Premji Invest acquires significant stake in SB Packagings

SB is a leader in sustainable flexible packaging and hygiene segment

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SB Packagings
Amit Banga of SB Packaging speaking at the PDIT2 Conference on sustainable laminates for flexible packaging. Photo PSA

A press release received on 12 August 2021, says that Delhi-based SB Packagings (SBP) has received investment from Premji Invest for a significant stake in the company. The transaction primarily involves partial stake sale held by the Banga family who are the existing promoter shareholders in SBP. The infusion of primary capital is meant for capacity expansion and for inorganic acquisitions to enable a faster scaling up SB Packagings’ flexible materials for both domestic and International markets.

SB Packagings being leading manufacturer of flexible packaging

Founded in 1989, by OP Banga, SBP is a leading manufacturer of flexible packaging materials in India, supplying to major players in the hygiene and food industry including P&G, J&J, Unicharm, Kimberly Clark, Nobel Hygiene, Walmart, Future Group, PepsiCo, Dabur, and Tata. SBP has won several awards and global accolades for its innovations and printing excellence and is at the forefront of providing sustainable packaging solutions.

The company is currently managed by the second generation managing director, Amit Banga, who joined the industry 30 years ago. After the closing of the transaction, Banga will continue to remain a significant shareholder in the company and would continue to drive the business. He will be supported by an enhanced professional management team with the help of financial and strategic support from Premji Invest.

Commenting on the deal, SBP’s managing director said, “We have grown steadily over the last decade, winning the trust and market share with our marquee global customers who have a very high threshold for quality and consistency. Innovation and sustainability have been the core pillars of SBP’s business model. With the backing from Premji Invest, one of India’s leading PE investors, we look forward to further expanding our capabilities through organic and inorganic routes thereby strengthening our position in the Indian flexible packaging Industry.”

Chairman Emeritus of SBP, OP Banga said, “The seeds sown four decades back have become a big tree now and this partnership with Premji Invest has my best wishes and blessings towards our vision of building a business around the needs of the society.”

Investing in middle size companies for growth

Premji Invest is the investment arm of Azim Premji’s endowment and philanthropic initiatives. It has been active in investing in the Indian markets for over ten years with a large investment corpus. The focus of investments has been to grow medium-sized Indian companies into large companies that can compete globally.

Premji Invest has put given its support across sectors like consumer, financials, technology, and manufacturing, including Fab India, Hygienic Research, ID foods, Lenskart, Policy Bazaar, Flipkart, Gold Plus Glass and Shubham Housing. Premji Invest is excited to partner with SB Packagings to help them scale to the next level of growth.

EY and Khaitan & Co acted as advisors to SB Packagings on this transaction.

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