Saif Partners, a Hong Kong-based venture capital firm, has recently acquired a 6.66 percent stake in Jindal Poly Films, India’s largest manufacturer of flexible packaging films. The shares have been acquired in an off-market transaction.
SAIF Partners picked up 1.87 million shares for a consideration of approximately Rs 56 crore ($12.4 million). Vibhor Mehra of Saif Partners said, ‘’This deal is an important milestone for Saif Partners, as it is our first investment in the manufacturing sector in the country.’’
With expectations of high double digit growth in the modern retail formats, such as shopping malls, food processing and packaging, and consequently the flexible packaging industry. As a standalone entity, Jindal Poly Films derives about 60 per cent of its revenues from the flexible packaging business and the balance from its polyester yarn business. It also makes polyester chips, which are consumed by its PET films and polyester yarn divisions. The yarn business was a drag on its earnings in FY-05 with flexible packaging business contributing more than 90 per cent of its profits.
Private equity investments in India are witnessing an unprecedented boom with total investments expected to exceed USD 4 billion in this fiscal year alone. Saif Partners has $1bn under its management and this investment is being made from the second fund it raised in June '05 for $650m.
