Investcorp invests Rs 340Cr paper-based packaging solutions Canpac Trends

Global alternative investment firm Investcorp has announced an investment of Rs 340 crore (approximately $41 million) in Canpac Trends, a provider of paper-based packaging solutions.

The development move not only injects substantial capital into Canpac but also marks a partial exit for JM Financial India Fund II, which has been a key investor in Canpac since 2021.

What will be the impact on Canpac Trends?

Nilesh Todi, the founder of Canpac Trends, said, “This investment comes at a vital point in our growth journey as we continue to expand our presence across India. The funding round will enable us to scale up our manufacturing and sales capabilities.” 

Canpac, known for its diverse range of products, including folding cartons, paper bags, luxury boxes, and more, plans to use this investment to expand its production across major Indian manufacturing hubs and to bolster its research and development initiatives.

Serving large & mid-sized companies

The company said it serves over 400 large and mid-sized companies in India and abroad. In 2023, Canpac set up Altpac to foray into manufacturing paper bags for e-commerce and omnichannel retail and Sweetdisp to cater to the fast-growing chained QSR and food services sector.

Currently, the firm operates four manufacturing plants located in three cities—Ahmedabad, Kolkata, and Tiruppur. Canpac’s research and development (R&D) facility offers customers real-time sampling and customised packaging solutions.

What does Investcorp say about Canpac Trends?

“While paper packaging market is over Rs 570 billion in India, the industry remains highly fragmented with an opportunity for leaders to consolidate. In this industry, Canpac has firmly established itself as a leader which is able to serve customers with superior standards of quality and safety,” said Anshuman Goenka, Partner, Investcorp.

Investcorp specializes in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure, and insurance asset management.

The growth of India's packaging industry

The investment comes at a time when India's packaging market is experiencing rapid growth. Expected to reach $204.81 billion by 2025, the market is registering a significant compound annual growth rate (CAGR) of 26.7% from 2020 to 2025. The fastest-growing segments include laminates and flexible packaging, with the industry comprising over 900 paper units.

Join our new WhatsApp Channel for the latest startup news updates