EPL, Indovida to merge in $2 billion deal to create consumer packaging unit

EPL Limited and Indovida India Private Limited announced on Sunday a merger that will create a consumer packaging major with a combined valuation of around $2 billion and annual revenue of about $1 billion.

The agreement, cleared by the boards of both companies, is now awaiting regulatory and shareholder approvals.

As part of the deal, Indorama Ventures will become a co-promoter with a 51.8% stake in the merged company, while Blackstone will hold about 16.6%. EPL has been valued at around $1.2 billion in the transaction, while Indovida is pegged at roughly $700 million.

The merger also values EPL shares at ₹339 each, a sharp premium of about 70% over its recent closing price.

The combined entity will bring together EPL’s strength in flexible packaging and Indovida’s expertise in rigid PET packaging, creating a broader platform to serve companies across emerging markets. Nearly three-fourths of the new entity’s business is expected to come from these fast-growing regions.

The leadership structure will remain largely unchanged, with Hemant Bakshi continuing as Group CEO of the merged entity. Sunil Marwah, CEO of Indovida, will continue to head the Indovida business and report to Bakshi.

The companies said the merger will help expand their global reach, improve efficiency, and strengthen their ability to serve both large and emerging brands. By combining operations, they expect savings in procurement and supply chains, along with better use of resources.

Financially, the deal is expected to improve profitability. The merged company’s operating margins are projected to rise, while returns on capital are also likely to see an uptick.