PAG invests $200 million in Pravesha Industries for a majority stake

This marks PAG’s second investment in the packaging sector in just two months, following its recent deal to acquire a stake in India’s largest packaging company, Manjushree Technopack, which is valued at $1 billion.

The firm’s aggressive strategy in the packaging space underscores the sector’s substantial growth potential, driven by demand across India’s consumer, industrial, pharmaceutical, and export industries.

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While Manjushree serves a diversified customer base spanning consumer end-markets such as home care, personal care, food and beverages, paints, nutraceuticals, agrochemicals, liquor and spirits, and dairy, Pravesha stands out as a specialized player, focusing solely on pharmaceutical packaging.

“India’s packaging sector has been one of our focuses, given its exposure to key themes driven by India’s domestic manufacturing, consumer and industrial sectors, particularly the strength of the country’s pharma export industry, leading to an expected double digit industry growth over the next decade and beyond,” Nikhil Srivastava, partner & managing director, head of India Private Equity at PAG said in a statement on Monday.

While financial terms of the deal were not disclosed, Srivastava emphasized that Pravesha would play a pivotal role in expanding PAG’s portfolio in the packaging sector, contributing to both organic and inorganic growth moving forward.

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Founded in 1999, Pravesha manufactures over 15,000 metric tonnes of plastic bottles, closures, and drums, in addition to producing more than two billion units of cartons, labels, and leaflets annually for some of the world’s largest pharmaceutical companies. 

The company claims that approximately 95% of its packaging products are exported to developed markets, including the US and Europe.

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PAG has been actively investing in India since 2009 and now manages over $3 billion in assets across various sectors. Its other notable investments include Nuvama Wealth Management, one of India’s largest wealth management firms; Sekhmet Pharmaventures, a diversified pharmaceutical platform; and Acme Formulations, a leading contract development and manufacturing outsourcing company.