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Mumbai, December 15: Global alternative investment firm Investcorp has spearheaded an investment of Rs 340 crore (USD 41 million) in Canpac Trends, a prominent paper-based packaging solutions provider. This strategic move marks a partial exit for JM Financial's second India fund, which has been associated with Canpac since 2021.

About Canpac Trends

Established by Nilesh Todi, Ahmedabad-based Canpac excels in the production of folding cartons, catering to diverse end-use sectors such as fashion and retail, food and food services, FMCG, and industrial products. The company's product portfolio also encompasses paper bags, luxury boxes, corrugated cartons, and flexible laminate solutions. Canpac operates four state-of-the-art manufacturing plants in Ahmedabad, Kolkata, and Tiruppur (Tamil Nadu), complemented by a dedicated R&D facility.

Investment Objectives

The substantial investment from Investcorp will empower Canpac to broaden its production capabilities by establishing additional manufacturing hubs. Simultaneously, the company aims to bolster its sales capabilities, thereby strengthening its market presence and competitiveness.

Investcorp's Perspective

Gaurav Sharma, the head of India investment business at Investcorp, highlighted the significance of paper packaging in promoting sustainability, which aligns with Investcorp's core investment principles across various geographies.

Market Potential

According to Anshuman Goenka, a partner at Investcorp, the domestic paper packaging market holds immense potential, valued at over Rs 57,000 crore. This lucrative market presents significant growth opportunities for Canpac.

About Investcorp

Established in 1982, Investcorp has carved a niche in alternative investments, encompassing private equity, realty, credit, infrastructure, and insurance asset management. With a global presence spanning 14 offices across the US, Europe, the GCC, India, China, Japan, and Singapore, Investcorp boasts over USD 48 billion in assets under management.