Ahmedabad-based packaging provider Canpac Trends recently secured an investment of Rs.340 crore (US $ 41 million) from global alternative investment firm Investcorp. This transaction marks a partial exit for JM Financial’s second India fund, which has been an investor in Canpac since 2021. Founded by Nilesh Todi, Canpac specialises in manufacturing paper-based packaging and cartons used across the fashion industry, retail and FMCG.
With manufacturing plants in Ahmedabad, Kolkata, Tiruppur, and an R&D facility, Canpac is set to utilise this investment to broaden its production reach by establishing additional manufacturing hubs and enhancing sales capabilities, as per Nilesh Todi.
Gaurav Sharma, head of India investment at Investcorp, emphasised the significance of paper packaging in promoting sustainability, aligning with Investcorp’s core investment priorities worldwide.
Investcorp’s Anshuman Goenka highlighted the substantial size of the domestic paper packaging market, exceeding Rs. 57,000 crore.
Investcorp specialises in diverse alternative investments encompassing private equity, realty, credit, infrastructure, and insurance asset management. Managing over USD 48 billion in assets, the firm operates across 14 global offices spanning the US, Europe, GCC, India, China, Japan, and Singapore.
Reflecting on Canpac’s performance in March 2023, the company reported a total income of Rs. 389.72 crore and a net profit of Rs. 9.82 crore. Despite competition from Western counterparts like Teramount, Tipa, and Packlane, Canpac stands out due to its extensive industry experience and a comprehensive range of packaging solutions, including, paper bags, luxury boxes, corrugated cartons and flexible laminate solutions. It employs over 700 people and more than a hundred technical experts across its operations.
