Private equity giant Blackstone and Thailand’s Indorama Ventures have agreed to combine their packaging businesses in India, creating a $2 billion giant with annual sales of about $1 billion.
Blackstone-backed EPL on Sunday informed exchanges that it has signed definitive agreements with Indorama’s rigid packaging venture Indovida India Pvt. Ltd for a merger through a share swap. Once the merger is complete, Indorama will hold 51.8% in the combined entity and become its co-promoter, while Blackstone’s holding will stand at 16.6%. Indorama currently owns 24.9% in EPL, earlier called Essel Propack Ltd, while Blackstone owns around 26.5%.
After the merger, EPL will continue as the listed entity. Indorama will nominate at least three directors to its board, while Blackstone will nominate one. The merger establishes a multi-format packaging platform operating primarily in emerging markets, the Mumbai-based company said in a statement to stock exchanges. Since it is a share swap, there is no regulatory requirement for an open offer to minority shareholders.
“Post-merger, 75% of the total business will come from underpenetrated emerging markets, which is expected to drive up both earnings before interest and tax (Ebit) and return on capital employed (ROCE),” said EPL chief executive Hemant Bakshi, who will lead the merged entity as group chief executive officer. Sunil Marwah will continue as chief executive officer (CEO) of the Indovida business division, reporting to Bakshi.
Essel Packaging was founded in 1982 under Subhash Chandra’s Essel Group. It was renamed after its merger with Swiss firm Propack in 1997. Over the next two decades, Essel Propack built a strong international footprint across the Americas, Europe, Asia, and Africa.
In 2019, Blackstone invested $460 million to acquire a 75% stake in the company, and renamed it EPL. The private equity firm subsequently sold a 23% stake in EPL for $252 million in a block deal September 2020. In May 2025, Indorama Ventures acquired 24.9% in EPL, with Blackstone’s stake falling to approximately 26.5%. Some of its domestic competitors include PAG-backed Manjushree Technopack, Japanese major Huhtamaki Co, and Warburg Pincus backed Parksons Packaging.
Indovida is valued at approximately $700 million, representing a 35% discount to the valuation multiple applied to EPL, the company statement said. The swap ratio determining this structure was recommended by independent valuers BDO and Duff & Phelps, with EY providing a “fairness opinion”, the press release said.
will benefit from Indovida’s presence in markets like Nigeria, Tanzania, Ghana and Vietnam—geographies where EPL has no historic presence—said Bakshi, who expects the necessary regulatory approvals within 12 months.
Independent experts have valued the EPL business at 12.5 times Ebitda, implying a valuation of $1.2 billion and a share price of ₹339, Bakshi said. This represents a 70% premium over the current traded price of ₹205. Also, EPL’s business is valued at a 55% premium relative to the Indovida business, Bakshi said.
Financially, the combination is structured to be accretive to earnings per share from the first day of operations. Based on 2025 metrics, the merger expands the operation’s Ebit margin to 13.6% for the combined entity from 12.4% for EPL on a standalone basis, Bakshi explained. ROCE is projected to increase from 18.7% to 20.9% over the same period, he added.
The Indovida business is a net-cash entity, which will cause the combined debt-to-Ebitda ratio to drop to 0.25, creating a healthy balance sheet with significant firepower for future inorganic growth, Bakshi explained. “This merger directly addresses the company’s strategic goals by entering rigid plastics, a $100 billion global market,” Bakshi added.
While EPL is always evaluating more options for inorganic growth, future acquisitions will follow three specific criteria, Bakshi explained. “Entering new geographies, building new capabilities or formats such as caps and closures, and ensuring the deals are margin-accretive.”
On 18 March, Mint reported that prices of key inputs for the packaging industry such as (used for plastic bottles) and polyolefins (used for bottle caps, labels and pouches) have surged by 40% to 80% in weeks, driven by the West Asia war and subsequent global crude oil volatility.