EPL, Indovida forge US$2B packaging titan, uniting flexible, rigid forces under one roof

INDIA – EPL has agreed to merge with Indorama Ventures’ rigid PET packaging platform Indovida in a US$2 billion deal that creates a diversified multi-format packaging giant with over US$1 billion in annual revenue and 75 percent of its business anchored in high-growth emerging markets.

The transaction values EPL at approximately US$1.2 billion, a striking 70 percent premium to its closing share price, while Indovida is valued at roughly US$700 million.

Following completion, Indorama Ventures will emerge as the promoter with a 51.8 percent stake, while Blackstone retains 16.6 percent ownership.

EPL will continue as the listed entity, with Indovida merging into it through a scheme of amalgamation.

The Strategic Logic: A Marriage of Strengths

Hemant Bakshi, managing director and global CEO of EPL who will lead the merged entity, explained that this merger transforms EPL from a single-format flexible packaging leader into a broader multi-format platform with unmatched presence in high-growth emerging markets.

The combined entity will derive 75 percent of its revenue from emerging markets across Asia, Africa, and South America while expanding its addressable market into the US$100 billion rigid plastics segment.

Indovida brings critical presence in Vietnam, Nigeria, Tanzania, and Ghana, markets where EPL has historically had no footprint, while EPL opens doors for Indovida in India, China, and Latin America.

The Financial Architecture: Value Where It Counts

The valuation framework assigns EPL at 12.5 times EBITDA, a premium multiple, while Indovida is valued at a discount of approximately 35 percent.

The transaction is structured to be earnings-per-share accretive from day one, with debt-to-EBITDA projected to drop to a healthy 0.25, creating significant firepower for future acquisitions.

Aloke Lohia, group CEO of Indorama Ventures, described the combination as the logical next step following the firm’s minority investment in EPL in May 2025.

He noted that the merger advances Indorama’s objective of deepening its presence in India and strengthening its downstream packaging footprint.

The Geography of Growth: Bridging Continents

Sunil Marwah will continue to lead the Indovida business division, reporting to Bakshi.

The merger arrives as India’s packaging industry accelerates toward a projected US$92 billion by fiscal 2030, with consolidation sweeping across the sector.

Bakshi signaled that acquisitions will remain central to the group’s strategy, guided by three criteria: entry into new geographies, addition of new capabilities such as caps and closures, and margin-accretive structures.

Indorama Ventures generated US$13.6 billion in revenue in 2025 and has completed approximately 50 acquisitions in recent years.

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