EPL Limited and Indovida India Private Limited have agreed to merge, forming a combined entity with $1 billion in revenue and a valuation of approximately $2 billion. Backed by Blackstone and Indorama Ventures, this merger creates a scaled, multi-format packaging platform focused on high-growth emerging markets. The transaction values EPL at a 70% premium to its previous closing price, with Indorama Ventures emerging as the 51.8% co-promoter.
Definitive Agreements Signed for Transformative Merger
EPL Limited (“EPL”), a leader in flexible packaging solutions backed by Blackstone, and Indovida India Private Limited (“Indovida”), a leading rigid PET packaging platform backed by Indorama Ventures, have signed definitive agreements to merge. This strategic combination, approved by both Boards, aims to establish one of the largest emerging markets packaging platforms globally, leveraging complementary capabilities across formats.
Valuation and Transaction Highlights
The combined entity is projected to have a total valuation of approximately $2 billion. EPL is valued at about $1.2 billion, representing a 70% premium over its Friday’s closing price, while Indovida is valued at around $0.7 billion (a ~35% discount relative to EPL’s multiple). The transaction is expected to be EPS accretive from Day 1.
Ownership Structure Post-Merger
- Indorama Ventures: Will become a co-promoter, holding 51.8% ownership in the merged entity.
- Blackstone: Will retain a 16.6% stake in the combined company.
Strategic Rationale for Combining Forces
The merger is driven by several strategic advantages:
- Scale: The merged company will achieve approximately $1 billion of revenue, positioning it among the leading emerging markets focused packaging companies.
- Growth Potential: The combination targets robust growth, leveraging the fact that approximately 75% of MergeCo revenue will originate from emerging markets.
- Synergies: Expected efficiencies in procurement, supply chain, and leveraging strong sustainability initiatives across both organizations.
- Margin Accretive: Financial metrics are set to improve, with the 2025 projected EBIT margin expanding from EPL’s 12.4% to 13.6% for the merged firm. ROCE is also expected to rise from 18.7% to 20.9% by 2025.
Management Outlook
Mr. Hemant Bakshi will continue as the Group CEO leading the merged entity. Mr. Sunil Marwah, current CEO of Indovida, will continue to lead the Indovida business reporting to Mr. Bakshi. Leaders from all involved parties expressed optimism:
Hemant Bakshi (EPL): Stated the merger transforms EPL into a broader multi-format packaging platform with unmatched presence in high-growth emerging markets.
Mr. Aloke Lohia (Indorama Ventures): Highlighted that the merger logically extends Indorama Ventures’ foundation across formats and markets, deepening its presence in India, which remains a key growth market.
Animesh Agrawal (Blackstone): Noted that scale brings resilience and operational strength, enabling the larger company to better navigate the current environment.
Transaction Implementation Details
The proposed transaction will be implemented through a scheme of amalgamation, where Indovida will merge into EPL, which will remain the listed entity. The closing of the transaction is anticipated to occur in the next ~12 months, pending customary regulatory and shareholder approvals.
About the Companies
EPL Limited is a global packaging leader manufacturing laminated plastic tubes for FMCG and Pharma sectors, operating in 11 countries across 21 manufacturing facilities.
Indovida, 100% owned by Indorama Ventures, is a leading rigid PET packaging platform producing preforms, bottles, and closures, with 19 manufacturing facilities across 9 countries, primarily in South East Asia and Africa.
Indorama Ventures PCL is a global sustainable petrochemicals producer, serving essential markets with segments including PET, Fibers, and others. The company generated revenues of $13.6 billion in 2025.
Blackstone is described as the world’s largest alternative asset manager, managing over $1.3 trillion in assets across diverse global investment strategies.
Source: BSE
