Global NewsHigh Priority (9/10)India

Indorama Ventures to Merge Indian Packaging Business with Blackstone-Backed EPL in $2 Billion Deal

Bangkok-based Indorama Ventures, led by billionaire Aloke Lohia, will merge its Indian packaging unit Indovida India with EPL, a Blackstone-backed plastics manufacturer, in a $2 billion transaction, creating a company targeting $1 billion in annual revenue.

Key Points

  • Deal valued at approximately $2 billion, merging Indovida India with Blackstone-backed EPL
  • Indorama acquired 24.9% stake in EPL for 19 billion rupees ($219 million) last year
  • EPL has market cap of $1.2 billion, manufactures plastic laminates and tubes for pharma and FMCG
  • Merged entity expected to generate $1 billion in annual revenue, focus on emerging markets

Full Details

Indorama Ventures, controlled by petrochemicals billionaire Aloke Lohia, has agreed to merge its Indian packaging subsidiary Indovida India with EPL, a plastics-laminate and tube maker backed by U.S. private equity firm Blackstone. The deal is valued at approximately $2 billion and comes a year after Indorama acquired a 24.9% stake in EPL for 19 billion rupees ($219 million). India-listed EPL, with a market cap of $1.2 billion, manufactures plastic laminates and tubes for pharmaceutical and fast-moving consumer goods companies. The merged entity will combine EPL's flexible packaging expertise with Indovida's PET (plastic bottle) packaging business. According to Aloke Lohia, this combination is the logical next step to extend their foundation across formats and markets. The new company is expected to generate about $1 billion in annual revenue and focus on growth in emerging markets.

Why It Matters

This merger creates one of India's largest packaging companies, combining PET bottles with flexible packaging capabilities. The deal signals consolidation in India's packaging industry as companies seek scale to serve multinational clients and expand into emerging markets.

Sourceforbes.com

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