Mumbai: EPL Limited (“EPL”), one of the global leaders in flexible packaging solutions backed by Blackstone, and Indovida India Private Limited (“Indovida”), one of the leading global rigid PET packaging platforms backed by Indorama Ventures, have today signed definitive agreements for a merger. The merger has been approved by the Board of Directors of the respective companies and is subject to regulatory and shareholders’ approvals.
The merger will establish a stronger platform by combining the packaging portfolio and capabilities, expanding global access, and enhancing the addressable market size, growth potential and financial metrics.
The combined platform will have a valuation of ~$2 billion, with EPL being valued at ~$1.2 billion (70% higher than its Friday’s closing price) and Indovida being valued at ~$0.7 billion. This marks a pivotal step in EPL’s evolution from a single-format flexible packaging leader to a scaled, multi-format packaging platform, purpose-built to serve global and regional customers across high-growth emerging markets.
The transaction aligns with Indorama Ventures’ long‑term strategy to expand and deepen its presence in India, leveraging the country’s structural growth opportunity through an expanded and integrated packaging platform with public markets access. It is consistent with Indorama Ventures’ broader strategy under its IVL 2.0 program of building leading positions in key markets through focused partnerships, and value-accretive investments.
Strategic Rationale for the Merger
1. Scale: Merged entity will be one of the leading emerging markets focused packaging companies with ~$1 billion of revenue
2. Growth Potential: The merged entity will leverage EPL and Indovida’s industry leading positions in emerging markets (~75% of MergeCo revenue is from emerging markets) and complementary geographical presence to drive higher growth.
3. Synergies: The merger is expected to result in sizable synergies driven by complementary geographic footprint and products, procurement & supply chain efficiency, and strong sustainability initiatives of both the companies.
4. Attractive Valuation: EPL’s valuation reflects a premium to the multiple ascribed to Indovida, with Indovida being valued at a ~35% discount to EPL. This attractive valuation will drive long-term value creation for all Shareholders and is EPS accretive from Day 1.
5. Margin Accretive: Strong financial metrics with 2025 EBIT margin expanding from 12.4% for EPL to 13.6% for the merged entity. Similarly, the transaction would be RoCE accretive with 2025 RoCE expected to increase from 18.7% for EPL to 20.9% for the merged entity.
6. Management Strength: Complementary management team with deep expertise in South Asian, African and Latin American emerging market operations.
Hemant Bakshi, Managing Director & Global CEO, EPL, said: “This merger represents a defining moment in EPL’s journey. This merger helps transform EPL into a broader multi-format packaging platform with unmatched presence in high-growth emerging markets; focused on innovation for large and emerging brands. The combined capabilities, customer relationships and global footprint position us to become the partner of choice for customers and drive growth across categories and markets. I am excited to welcome the Indovida team to the EPL family and look forward to building an exciting future together.”
Aloke Lohia, Indorama Ventures, added: “Indovida has been built as a customer-centric, operationally strong packaging platform. Our initial minority investment in EPL was reflective of our belief that it is an extremely attractive business with great future potential, globally as well as in India. Combining Indovida with EPL is the logical next step, and enables us to extend that foundation across formats and markets. With our combined scale, supply chain resilience and sustainability capabilities, the merged entity is well positioned to deliver long-term value to customers and shareholders alike. The merger also meaningfully advances Indorama Ventures’ strategic objective of deepening its presence in India, strengthening our downstream packaging footprint and reinforcing India as a key growth market within our global portfolio.”
Animesh Agrawal, Managing Director at Blackstone and a Director on EPL’s Board, said: “This transaction marks a milestone for the industry. In today’s evolving market environment, scale brings resilience, operational strength, and a greater ability to deliver value to customers. Larger companies are better positioned to navigate the current environment and strengthen their market position.”
This merger creates a leading emerging markets platform with a strong competitive position and significant growth potential, both organic and inorganic. We are excited for the company’s next phase of growth and value creation.”
Based on the valuation analysis and the swap ratio recommended by the independent valuers, Indorama Ventures will emerge as a promoter of the merged entity, holding 51.8% stake in the merged entity. In May 2025, Indorama Ventures had made a financial investment of 24.9% stake in EPL. The proposed transaction will be implemented through a scheme of amalgamation, pursuant to which Indovida will merge with EPL, and EPL will continue as the listed entity. The transaction is subject to customary shareholder, regulatory and court approvals. The transaction is expected to close in the next ~12 months.
Goldman Sachs is acting as financial advisor to the transaction. Trilegal is acting as legal counsel to EPL and Khaitan & Co. and Chandhiok & Mahajan are acting as legal counsels to Indovida. The swap ratio has been recommended via a joint valuation report by independent registered valuers (BDO and Duff & Phelps), and EY has provided fairness opinion on the swap ratio.
