Investcorp to lead Rs 340 Cr investment in packaging firm Canpac Trends

The transaction will also provide a partial exit to JM Financial India Fund II, which has held investments in Canpac since 2021.

Investcorp to lead Rs 340 Cr investment in packaging firm Canpac Trends

Friday December 15, 2023,

2 min Read

Global alternative investment firm Investcorp is leading an investment of Rs 340 crore in packaging and printing firm Canpac Trends. The transaction will also provide a partial exit to JM Financial India Fund II, which has held investments in Canpac since 2021.

JM Financial acted as the exclusive financial advisor to Canpac and its selling shareholders.

“This investment comes at a vital point in our growth journey as we continue to expand our presence across India. This funding round will enable us to scale up our manufacturing and sales capabilities,” said Nilesh Todi, Founder of Canpac Trends.

This investment will enable Canpac to expand its production footprint to key manufacturing hubs nationwide. Moreover, the allocated funds will be utilised to accelerate expansion growth through acquisitions and reinforce its R&D initiatives.

“We are always on the lookout for companies run by ambitious first-generation entrepreneurs that we believe will outperform peers. Nilesh Todi has demonstrated that, with consistent execution over a period of time. Paper packaging also champions sustainability, a key Investcorp priority for each one of our investments across all our geographies,” said Gaurav Sharma, Head, India Investment Business, Investcorp.

Founded by Nilesh Todi, Ahmedabad-based Canpac specialises in delivering folding carton solutions to clients in industries such as fashion and retail, FMCG, and industrial products. The company extends its offerings to include paper bags, luxury boxes, corrugated cartons, and flexible laminate solutions.

“While the paper packaging market is over Rs 570 billion in India, the industry remains highly fragmented with an opportunity for leaders to consolidate. Canpac has firmly established itself as a leader which is able to serve customers with superior standards of quality and safety,” said Anshuman Goenka, Partner, Investcorp.

Currently, the firm operates four manufacturing plants located in three cities—Ahmedabad, Kolkata, and Tiruppur. Canpac’s research and development (R&D) facility offers real-time sampling and customised packaging solutions to its customers.

(The copy was updated to add the name of the financial advisor.)


Edited by Affirunisa Kankudti