EPL to merge with Indovida in USD 2-billion deal to create packaging giant
EPL, backed by Blackstone and Indovida India, a leading rigid PET packaging platform supported by Indorama Ventures, have signed agreements to merge with a combined valuation of approximately USD 2-billion and annual revenue of USD 1-billion.
30 Mar 2026 | 54 Views | By Abhay Avadhani
The merger marks a pivotal step in EPL’s evolution from a single-format flexible packaging leader to a scaled, multi-format packaging platform.
By combining EPL’s flexible packaging expertise with Indovida’s rigid PET capabilities, the new entity intends to offer a comprehensive portfolio to global and regional brands.
The transaction aims to create one of the largest emerging markets-focused packaging platforms. Under the terms of the merger, EPL is valued at approximately USD 1.2-billion, representing a 70% premium over its previous closing price of INR 339-per share. Indovida is valued at roughly USD 700-million, at a 35% discount to the multiple ascribed to EPL.
Following the completion of the all-equity swap, Indorama Ventures emerges as a co-promoter of the company with a 51.8% stake, while Blackstone retains a 16.6% stake in the merged entity.
The combined company expects to derive nearly 75% of its revenue from high-growth emerging markets across Asia, Africa, and Latin America. Hemant Bakshi, managing director and global CEO of EPL, said, “This merger represents a defining moment in EPL’s journey, transforming the company into a broader multi-format packaging platform with an unmatched presence in high-growth emerging markets.”
He noted that the combined capabilities and global footprint position the entity to become the partner of choice for customers. Aloke Lohia of Indorama Ventures added that the merger advances the group's strategic objective of deepening its presence in India and strengthening its downstream packaging footprint.
The transaction is expected to be EPS-accretive from the first day, with projected improvements in financial metrics. The 2025 EBIT margin is expected to expand from 12.4% for EPL to 13.6% for the merged entity, while the RoCE is forecasted to increase from 18.7% to 20.9%.
The companies anticipate sizable synergies driven by complementary geographic footprints, procurement efficiencies, and supply chain strength. Animesh Agrawal, managing director at Blackstone, shared, “In today’s market, scale brings the resilience and operational strength needed to deliver value to customers.”
Hemant Bakshi remains the group CEO of the merged entity, while Sunil Marwah, CEO of Indovida, continues to lead the Indovida business and reports to Bakshi. The proposed transaction will be implemented through a scheme of amalgamation. It remains subject to customary regulatory and shareholder approvals and is expected to close within the next 12 months.
Goldman Sachs acts as the financial advisor, with Trilegal, Khaitan & Co, and Chandhiok & Mahajan serving as legal counsel for the transaction.