Warburg Pincus buys majority stake in Parksons Packaging

29 April 2021: Warburg Pincus has acquired a majority stake in Parksons Packaging Ltd. it said in a recent statement. Financial details of the transaction were not disclosed it is beleived that Warburg has acquired around 80% stake in the company at an enterprise value of around Rs.2,200 crore.

The company recorded revenue of around Rs.1,000 crore last fiscal. Parksons revenues have grown at a compound annual growth rate of 15.5% over the last five fiscals through FY20 while maintaining a healthy double-digit operating margin, rating agency Crisil Ltd. said in a September report.

As part of the transaction, existing PE investors Kedaara Capital AIF 1 and Olza Holdings Ltd and IIFL have fully exited their investment in Parksons and the promoter Kejriwal family has sold a partial stake. Family members Ramesh Kejriwal, Siddharth Kejriwal and Chaitanya Kejriwal will continue to retain their current positions of chairman, managing director and joint managing director, respectively and will drive the business going forward, it added.

The deal highlights a growing PE interest in packaging businesses in India driven by rising demand for packaging of household, medical, edible and lifestyle products in Asia’s third largest economy.