The proposed merger, approved by the boards of both companies, will bring together EPL’s flexible packaging capabilities with Indovida’s rigid PET packaging portfolio, creating a multi-format packaging player with a wider global footprint and stronger growth prospects.
The transaction, expected to close over the next 12 months, will be implemented through a scheme of amalgamation,post which Indovida will merge with EPL, and EPL will continue as the listed entity.
Under the deal, EPL is valued at around $1.2 billion, implying a price of ₹339 per share—about 70 per cent higher than its previous closing price—while Indovida is valued at roughly $0.7 billion, at a 35 per cent discount to EPL’s valuation multiple.
Post-merger, Indorama Ventures will emerge as the promoter with a 51.8 per cent stake, while Blackstone will hold 16.6 per cent in the combined entity.
The merged company will derive nearly 75 per cent of its revenue from emerging markets, leveraging complementary geographic presence across Asia, Africa and Latin America. The combination is expected to drive growth through cross-selling opportunities, improved procurement and supply chain efficiencies, and enhanced sustainability initiatives.
Financially, the merger is projected to be margin and return accretive. The combined entity’s EBIT margin for 2025 is expected to expand to 13.6 per cent from EPL’s standalone 12.4 per cent, while return on capital employed is seen improving to 20.9 per cent from 18.7 per cent. The transaction is also expected to be earnings per share accretive from the first year.
“The size of our business, both in terms of revenue and bottomline doubles with this transaction,” EPL’s Managing Director and Global CEO Hemant Bakshi, who will lead the merged entity, told businessline in a chat.
“Overall, it gets us new emerging markets. It helps us get into a new format of rigid packaging, which has a TAM (total addressable market) of $100 billion. And thirdly, it helps us leverage the capabilities which the Indovida business has, to build innovations and become an innovation partner,” he added.
The aim is to build a consumer packaging leader in the emerging markets, he said. Currently 90 per cent of Indovida’s business is from emerging markets.
Bakshi estimated combined cost and revenue synergies of the merger at $35-50 million, with cost synergies alone at $5-7 million.
Indovida CEO Sunil Marwah will continue to head the Indovida business and report to Bakshi.
The deal marks EPL’s transition from a single-format packaging company into a diversified packaging platform catering to FMCG, pharma and food and beverage sectors.
For Indorama Ventures, the merger aligns with its strategy to deepen its presence in India and expand its downstream packaging footprint through partnerships and value-accretive investments.
Published on March 29, 2026