Indorama joins race for PET film maker Polyplex

MUMBAI: Thailand’s Indorama Ventures has joined the race to acquire control of Noida-based listed packaging materials maker Polyplex Corp. Ltd, three people with direct knowledge of the deal said.

The company has also seen interest from financial investors, including Bain Capital and CVC, these people said, requesting anonymity.

Polyplex, which had a market value of ₹5,435 crore, is seeking a valuation of $1 billion, including debt, the people said.

“The three bidders have engaged with the company separately and, basis their due diligence and the offer price, the company will decide to enter into an exclusivity agreement with one of them soon,” one of the people said.

Last year, the company’s promoters, the Saraf family, hired investment bank Goldman Sachs to scout for buyers. Mint was first to report the development on 16 April 2021. The promoters, owing to succession issues, wanted to capitalize on the investor interest in the segment, the Mint report said.

Emailed queries to the spokespeople for Polyplex, Indorama Ventures, Bain and CVC did not elicit any response till press time.

For Indorama Ventures, a maker of materials for food and beverage packaging, the acquisition of Polyplex’s business will help increase capacity significantly in key global markets.

Polyplex had earlier sold its polyethylene terephthalate, or PET, resin plant near Istanbul to Indorama Ventures in 2015.

Polyplex is the fifth-largest producer of polyester films in the world and has manufacturing and distribution centres in India, Turkey, Thailand, Indonesia, the Netherlands, and US, from where it supplies packaging materials to 83 countries.

“The acquisition will help Indorama double down in some of its key markets,” the second person said.

India’s packaging sector has seen investor interest for some time now.

Some of the previous deals in the segment include Advent International’s investment in Manjushree Technopack, Blackstone’s investment in Essel Propack and Warburg Pincus’ investment in Parksons Packaging.

According to shareholding pattern available on the bourses, the promoters of Polyplex own 50.97% of the company.

On Thursday, Polyplex shares, which have doubled since April last year, gained 0.51% to ₹1,729 on BSE.

MINT Businessman Sanjiv Saraf and family, the promoters of Polyplex, own 50.97% of the company.