Investcorp inks deal to lead an investment of INR 340 Crores in Canpac Trends

14 Dec 2023

ESG friendly play riding on India’s strong consumer growth

14 December 2023: Investcorp, a leading global alternative investment firm, announced that it has led an investment of INR 340 crore (~$41 million) in Canpac Trends, a leading provider of paper-based packaging solutions. The contemplated transaction will also provide a partial exit to JM Financial India Fund II that has been invested in Canpac since 2021.

Founded by Nilesh Todi, Ahmedabad-based Canpac offers folding carton solutions to customers in diverse end-use industries which include Fashion & Retail, Food and Food Services, FMCG, and Industrial Products. In addition to folding cartons, Canpac also provides paper bags, luxury boxes, corrugated cartons, and flexible laminate solutions. Canpac has 4 modern manufacturing plants across three cities – Ahmedabad, Kolkata and Tiruppur. Canpac’s state-of-the-art R&D facility provides real time sampling and customized packaging solutions to its customers.

This investment will help Canpac expand its production footprint to all major manufacturing hubs of the country. Additionally, these funds will be utilized to accelerate growth via acquisitions and strengthen its R&D initiatives.

Nilesh Todi, Founder of Canpac Trends, shared, “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. We are delighted to partner with Investcorp, a globally recognized investor with a strong track record of adding value to investee companies. We will continue to work towards achieving our vision of becoming India’s go-to packaging solutions provider”.

Gaurav Sharma, Head, India Investment Business, Investcorp, said: “At Investcorp, 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”.Anshuman Goenka, Partner, Investcorp, said, “We are excited to partner with Nilesh Todi in the next phase of Canpac’s growth.  While paper packaging market is over INR 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 which is able to serve customers with superior standards of quality and safety. At Investcorp India we believe in – ‘consolidation of unorganized sectors, and a long-term growth in brand spends’. This investment brings both these together”.