Blackstone agrees $1b acquisition of India's Piramal Glass

It represents the largest-ever transaction in India’s packaging industry and ranks among the top three in Asia over the past 20 years, according to Axis Capital, an advisor on the deal. It also continues Blackstone’s involvement in the industry, following a INR32.1 billion investment in Essel Propack – which provides the tubes to 40% of the world’s toothpaste – in 2019. The GP made a INR18.6 billion partial exit in September, reducing its stake to 51%.

Piramal Glass serves the cosmetics and perfumery, specialty food and beverage, and pharmaceutical industries, with sales spanning more than 65 countries. It claims to be a global leader in color cosmetics, working with 17 of the world’s top 20 brands. Meanwhile, the company is one of few to have type-one pharma glass manufacturing capabilities used to deliver liquid injectable drugs.

There are design, production and decoration facilities in India, Sri Lanka, and the US. Overcall capacity is 1,475 metric tons of glass per day, from 12 furnaces and 65 production lines.

Piramal Group has controlled the business since 1984, when it completed the acquisition of Gujarat Glass. The parent company is worth $10 billion and has interests across pharmaceuticals, financial services, information management, and real estate, as well as glass packaging. Current priorities include strengthening the balance sheet and simplifying the corporate structure of Piramal Enterprises, the flagship listed entity, to concentrate on pharmaceuticals and financial services.

Other recent divestments include analytics unit Decision Resources Group, which was fully exited to US-based Clarivate Analytics for $950 million, and the sale of a 20% stake in Piramal Pharma for approximately $490 million at a valuation of $2.78 billion. The Carlyle Group is the investor, and it has an upside component of up to $360 million, depending on performance.

Prior to the Piramal Glass deal, private equity investors had deployed $33.9 billion in India in 2020 to date, short of last year’s record total of $37.7 billion. Two Reliance Industries subsidiaries – Jio Platforms and Reliance Retail – have between them raised more than $15 billion. Piramal Glass is the only other transaction to reach the $1 billion mark.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Buyouts
• Industrials
• India
• The Blackstone Group
• manufacturing