[Funding alert] Premji Invest acquires 'significant' stake in flexible packaging firm SB Packagings for $25M

Delhi-based flexible packaging maker SB Packagings (SBP) yesterday announced Premji Invest has invested "for a significant stake" in the company, and the transaction primarily involves partial stake sale held by the existing shareholders in SBP and infusion of primary capital for capacity expansion and inorganic acquisitions.

The deal size is reportedly $25 million.

Amit Banga, MD, SBP said:

“We have grown steadily over the last decade, winning the trust and market share with our marquee global customers who have a high threshold for quality and consistency. With the backing from Premji Invest, we look forward to expanding our capabilities through organic and inorganic routes and strengthening our position in the Indian flexible packaging Industry." 

Founded in 1989, SBP is a manufacturer of flexible packaging materials in India, supplying to major players in the hygiene and food industry including P&G, J&J, Unicharm, Kimberly Clark, Nobel Hygiene, Walmart, Future Group, PepsiCo, Dabur, and Tata among other leading brands, the firm claimed in its statement.

It was founded by O.P. Banga and is currently managed by his son Amit Banga, who has been in the business for the past 30 years.

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Post the transaction, Amit will continue to remain a significant shareholder in the company and would continue to drive the business, supported by a professional management team further bolstered by the financial and strategic support from Premji Invest. 

Premji Invest is the investment arm of Azim Premji's endowment and philanthropic initiatives, and has been active in investing in the Indian markets for over ten years with large investment corpus. The focus of investments has been to grow medium-sized Indian companies into large companies that can compete globally.

Investments of Premji Invest is across sectors such as consumer, financials, technology, and manufacturing. FabIndia, Hygienic Research, ID foods, Lenskart, Policy Bazaar, Flipkart, Gold Plus Glass and Shubham Housing are among its investments.