JM Financial PE is to invest ₹60 crore in Gujarat-based Canpac Trends Private Ltd, a folding carton and packaging solutions company, which the company will use to fund its expansion plans.

The proceeds from the investment will support augmentation of the existing capacities of the company.

Canpac is a manufacturer of packaging materials such as folding cartons, corrugated boxes, paper bags, flexible laminates and luxury boxes, and supplies products to a diverse set of marquee customers across industries.

“The fund infusion will help the company scale-up its business and expand its market share. This is the seventh investment from our Fund II, and is in line with its stated strategy of investing in growth companies in the mid-market space,” Darius Pandole, Managing Director and CEO (PE and Equity AIFs) at JM Financial said.

Packaging sector outlook

“We believe that the packaging sector is poised to continue its growth trajectory. Increased consumption of packaged goods, growth in organised retail and e-commerce and increasing premiumisation will drive growth for organised packaging players and Canpac is well-positioned to capture this growth spectrum,” he added.

Canpac’s manufacturing plants are located in Ahmedabad (Gujarat) and Tirupur (Tamil Nadu). The company was founded in 2010 by Nilesh Todi, a first generation entrepreneur.

“Canpac has emerged as a fast-growing packaging player in the country with a key focus on folding carton and corrugated boxes. This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand market share,” Nilesh Todi, Managing Director at Canpac, said.

Advisors on the deal included Steer Advisors (investment banker), Economic Laws Practice (legal advisor to JM Financial India Fund II) and Anoma Legal (legal advisor to Canpac).

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