State Bank of India (SBI) has executed transaction documents to acquire a 6.35% stake in Canpac Trends Private Limited, an Ahmedabad-based company specializing in paper-based packaging solutions. The investment involves purchasing 370,644 shares at ₹1,349 per share, totaling ₹49.99 crore. SBI’s objective with this investment is capital appreciation, reflecting confidence in the growth potential of the paper packaging industry. The acquisition is expected to be completed within three months from the date of the transaction documents.
Founded in 2004, Canpac Trends offers a diverse range of paper-based packaging products, including folding cartons, corrugated cartons, flexible packaging, paper bags, and luxury boxes. The company operates four manufacturing plants located in Ahmedabad, Kolkata, and Tiruppur, as well as a research and development facility. In the fiscal year ending March 2023, Canpac reported a total income of ₹389.72 crore and a net profit of ₹9.82 crore.
This investment by SBI coincides with a significant funding round led by global alternative investment firm Investcorp, which invested ₹340 crore (approximately USD 41 million) in Canpac Trends. The infusion of capital is intended to support Canpac’s expansion plans, including increasing production capacity and scaling up sales capabilities across India. The transaction also provides a partial exit for JM Financial’s second India fund, which had been invested in Canpac since 2021.
These strategic investments underscore the growing importance of sustainable packaging solutions in the Indian market, aligning with global trends that emphasize environmental responsibility and sustainability.
