Prime Highlights
- The merger of EPL Limited and Indovida India Private Limited will form a major consumer packaging company valued at around $2 billion.
- The combined entity is expected to generate nearly $1 billion in annual revenue, strengthening its position in the global packaging market.
Key Facts
- Indorama Ventures will become a co-promoter with a 51.8% stake, while Blackstone will hold about 16.6%.
- EPL is valued at approximately $1.2 billion and Indovida at around $700 million, with EPL shares priced at ₹339, about a 70% premium over its last closing price.
Background
EPL Limited and Indovida India Private Limited on Sunday announced a merger that will create a major consumer packaging company with a combined valuation of around $2 billion. The merged company will likely generate nearly $1 billion in annual revenue, which will strengthen its position in the fast-growing global packaging market.
The merger agreement has received approval from the boards of both companies and is now pending regulatory clearances and shareholder consent. Once the deal is completed, it will combine two strong businesses, EPL’s flexible packaging and Indovida’s rigid PET packaging expertise. Industry watchers believe the combination will create a wider product platform and allow the merged company to serve a larger range of consumer and industrial brands.
Under the deal structure, Indorama Ventures will become a co-promoter of the merged company with a 51.8% stake. Private equity firm Blackstone will hold about 16.6%. The transaction values EPL at around $1.2 billion, while Indovida has been valued at roughly $700 million. EPL shares have been priced at ₹339 each, offering a premium of about 70% over the company’s latest closing market price.
The companies said the merger will help them expand their reach across global markets, especially in high-growth regions. Emerging markets are expected to generate nearly three-fourths of the total business because demand for consumer packaging solutions is rising there.
The leadership structure will remain largely unchanged. Hemant Bakshi will continue as Group CEO of the merged entity, while Indovida CEO Sunil Marwah will continue to lead the Indovida business and report to Bakshi.
The companies also expect the merger to improve efficiency through better procurement, supply chain savings, and improved use of resources. Financially, they anticipate stronger operating margins and improved returns on capital in the coming years.