EPL Limited has agreed to merge with Indovida India in a deal that will create a consumer packaging platform focused on emerging markets, with a combined valuation of around $2 billion.

Founded in 1982, EPL manufactures laminated plastic tubes for FMCG and pharmaceutical applications, operating more than 20 manufacturing facilities across 11 countries and employing over 6,000 people globally.

Meanwhile, Indovida India produces rigid PET packaging, including preforms, bottles and closures for food, beverage and healthcare markets, with 19 facilities across nine countries, primarily in Southeast Asia and Africa.

The transaction, approved by both companies’ boards, will combine EPL’s flexible packaging business with Indovida’s rigid PET capabilities, forming a group with approximately $1 billion in annual revenue.

Under the terms of the deal, EPL is valued at INR 339 per share, representing a 70% premium to its previous closing price, while Indovida is valued at a discount of around 35% to EPL’s multiple.

Following completion, Indorama Ventures, Indovida’s parent company, will become a co-promoter with a 51.8% stake in the combined entity. Blackstone, which backs EPL, will hold 16.6%.

EPL’s managing director and global CEO, Hemant Bakshi, will lead the merged company. Indovida CEO Sunil Marwah will continue to head the Indovida business and report to Bakshi.

The companies said the merger will expand geographic reach and product capabilities, with around 75% of revenue expected to come from emerging markets.

The combined group is expected to deliver operational synergies across procurement and supply chains, while improving financial metrics. EBIT margin is projected to increase from 12.4% for EPL to 13.6% for the merged entity, with return on capital employed rising from 18.7% to 20.9%.

The deal will be implemented through a scheme of amalgamation, with EPL remaining the listed entity.

Hemant Bakshi, MD and global CEO at 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, group CEO of Indorama Ventures, commented: “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, MD at Blackstone and a director on EPL’s board, added: “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.”

Completion of the transaction is subject to shareholder, regulatory and court approvals and is expected within 12 months.