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Investcorp Fuels Canpac Trends with Rs 340 Crore Investment
Investment Boost for Canpac Trends and Partial Exit for JM Financial India Fund II
Investcorp, a global alternative investment firm, recently infused a substantial Rs 340 crore (approx. $41 million) into Canpac Trends, a prominent player in innovative paper-based packaging solutions. Beyond a crucial capital boost for Canpac, this move signifies a partial exit for JM Financial India Fund II, a significant investor since 2021. This strategic investment underscores Investcorp’s commitment to fostering growth and innovation in the packaging sector, positioning Canpac for further expansion and industry leadership.
Investment Impact on Canpac Trends
Founder Nilesh Todi expressed the significance of this investment for Canpac’s growth journey. Todi stated, “This investment comes at a vital point in our growth journey as we continue to expand our presence across India. The funding round will enable us to scale up our manufacturing and sales capabilities.”
Canpac Trends, renowned for its diverse product range, including folding cartons, paper bags, luxury boxes, and more, plans to utilize this investment to expand production across major Indian manufacturing hubs and enhance its research and development initiatives.
Serving Large and Mid-Sized Companies
With a clientele spanning over 400 large and mid-sized companies in India and abroad, Canpac has positioned itself as a key player in the industry. In 2023, the company established Altpac to venture into manufacturing paper bags for e-commerce and omnichannel retail and Sweetdisp to cater to the fast-growing chained QSR and food services sectors.
Canpac currently runs four manufacturing plants across Ahmedabad, Kolkata, and Tiruppur. Their cutting-edge Research and Development (R&D) facility offers clients immediate access to real-time samples and tailor-made packaging solutions, showcasing Canpac’s commitment to innovation and personalized service in the paper-based packaging industry.
Investcorp’s Perspective on Canpac Trends
Anshuman Goenka, Partner at Investcorp, emphasized Canpac’s leadership position in the paper packaging market in India. He stated, “While the paper packaging market is over Rs 570 billion in India, the industry remains highly fragmented, with an opportunity for leaders to consolidate. In this industry, Canpac has firmly established itself as a leader that can serve customers with superior standards of quality and safety.”
Investcorp, specializing in alternative investments across various sectors, including private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure, and insurance asset management, sees potential in Canpac’s ability to navigate and lead in the evolving packaging landscape.
The Growth Landscape of India’s Packaging Industry
This strategic investment aligns with the booming growth of India’s packaging market, projected to reach $204.81 billion by 2025. The industry is witnessing a significant compound annual growth rate (CAGR) of 26.7% from 2020 to 2025, with laminates and flexible packaging emerging as the fastest-growing segments. The sector encompasses over 900 paper units, reflecting the dynamic and expansive nature of India’s packaging landscape.
Conclusion
In conclusion, Investcorp’s strategic investment in Canpac Trends converges seamlessly with the vibrant trajectory of India’s packaging industry. As the market gears up to soar to $204.81 billion by 2025, the noteworthy compound annual growth rate (CAGR) of 26.7% from 2020 to 2025 underscores the industry’s robust expansion. Notably, the surging prominence of laminates and flexible packaging accentuates the dynamic shift in consumer preferences. With over 900 paper units contributing to this flourishing sector, the landscape reflects both diversity and expansiveness.
Investcorp’s foresighted infusion of resources into Canpac Trends not only bolsters the company’s potential for innovation and growth but also symbolizes a strategic alignment with the evolving demands and opportunities within India’s thriving packaging realm. This investment positions Canpac Trends at the forefront of the unfolding narrative, poised to make a lasting impact in the dynamic and ever-expanding market for paper-based packaging solutions.
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