Synopsis: Shares of this packing firm surged 12% after its $2 billion merger with Indovida India Private Limited, creating a major emerging-markets packaging company with stronger margins, broader product reach, and projected annual revenue of $1 billion.
The shares of this company are one of the largest specialty packaging global companies, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home are in the spotlight after it rose by 12% in today’s market session after its $2 billion merger with Indovida India Private Limited.
With a market capitalisation of Rs. 6,408 cr, the shares of EPL Ltd were trading at Rs. 199.80 per share, increasing over 12% in today’s market session, making a high of Rs. 222.95, up from its previous close of Rs. 198.80 per share.
What’s the news
EPL Limited and Indovida India Private Limited have announced a merger that will create one of the largest packaging companies focused on emerging markets. The combined business is expected to generate around $1 billion in annual revenue and will have an estimated valuation of about $2 billion. The merger combines EPL’s flexible packaging expertise with Indovida’s rigid PET packaging business, creating a broader multi-format packaging platform.
Under the transaction, EPL is being valued at around $1.2 billion, which translates to Rs. 339 per share which is about 70% above its closing share price before the announcement. Indovida is being valued at around $700 million, at a roughly 35% lower valuation multiple than EPL. After the merger, Indorama Ventures will become the co-promoter of the merged company and will own 51.8% of it, while Blackstone will retain a 16.6% stake.
The main goal of the merger is to build a stronger packaging company across fast-growing regions such as South Asia, Africa and Latin America. Around 75% of the merged company’s revenue is expected to come from emerging markets. EPL and Indovida have complementary geographic footprints and product lines, which should help the new company grow faster and serve a wider range of global and regional customers.
The companies also expect meaningful synergies from the merger. These include better procurement and supply-chain efficiency, a broader manufacturing footprint and stronger sustainability initiatives. The combined company is expected to benefit financially as well. EBIT margins are projected to rise from 12.4% at EPL alone to 13.6% for the merged entity in 2025. Return on Capital Employed (RoCE) is also expected to improve from 18.7% to 20.9%.
The merger also brings together experienced leadership teams. Hemant Bakshi will remain Group CEO and will lead the merged organisation. Sunil Marwah will continue to run the Indovida business and report to Bakshi. The companies believe that this leadership combination will strengthen operations across their key emerging-market regions.
Hemant Bakshi, who currently heads EPL Limited, said the merger is a defining moment for the company. He explained that the deal will transform EPL from a flexible-packaging business into a broader multi-format packaging platform with a strong presence across high-growth emerging markets.
Bakshi added that the merged company will have stronger innovation capabilities, wider customer relationships and a larger global footprint. According to him, these advantages will help the company become the preferred packaging partner for both global and emerging brands.
Aloke Lohia, the leader of Indorama Ventures and one of the key backers of Indovida, said that Indovida India Private Limited was built as a customer-focused and operationally strong packaging business. He said combining it with EPL is the logical next step because it allows the business to expand across more packaging formats and regions.
Lohia also said the merger supports Indorama Ventures’ strategy of increasing its presence in India. He highlighted that the larger company will benefit from greater scale, a stronger supply chain and improved sustainability capabilities.
Animesh Agrawal, who represents Blackstone on EPL’s board, described the merger as an important milestone for the packaging industry. He said larger companies are better positioned to deal with changing market conditions because they have stronger operations, greater resilience and more ability to create value for customers.
Agrawal added that the combined company will become one of the leading packaging platforms in emerging markets, with strong potential for future growth through both business expansion and acquisitions.
About the companies
EPL Limited is a global packaging company that makes laminated plastic tubes for FMCG and pharmaceutical products. It operates 21 manufacturing facilities across 11 countries and employs more than 6,000 people from over 23 nationalities.
Indovida India Private Limited is a leading rigid PET packaging business producing preforms, bottles and closures for food, beverages, healthcare and consumer products. It has 19 plants across 9 countries, mainly in Southeast Asia and Africa, and is fully owned by Indorama Ventures.
Indorama Ventures is one of the world’s largest petrochemical and packaging companies, listed in Thailand under IVL.TB. It has around 25,000 employees, operations across Europe, Africa, the Americas and Asia-Pacific, and generated $13.6 billion in revenue in 2025.
Blackstone is the world’s largest alternative asset manager, with more than $1.3 trillion in assets under management. It invests across sectors such as private equity, real estate, infrastructure, credit and life sciences.
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