Indovida and EPL merge in multi-billion deal to boost global and emerging market reach

EPL, a flexible packaging solution provider backed by Blackstone, and Indovida, Indorama Ventures’ rigid packaging division, have signed definitive agreements for a merger.

The merger will create a US$1 billion revenue entity and a combined valuation of approximately US$2 billion, with EPL being valued at around US$1.2 billion and Indovida India at approximately US$0.7 billion.

The merger aims to build a more robust platform by combining the packaging portfolio and capabilities, expanding global reach, and increasing the addressable market size, growth potential, and financial metrics.

Hemant Bakshi, managing director and global CEO at EPL, says: “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.” 

Expanding global reach

The merger is expected to generate synergies, leveraging complementary geographic footprints, product offerings, procurement and supply chain efficiencies, and sustainability initiatives from the two companies.

Indovida India is valued at approximately a 35% discount to EPL. This valuation is expected to drive long-term value creation for all shareholders.

The merger will also result in strong financial performance, according to the companies, with the 2025 EBIT margin increasing from 12.4% for EPL to 13.6% for the merged entity. Additionally, the transaction is expected to be accretive to return on capital employed (ROCE), with last year’s ROCE projected to increase from 18.7% for EPL to 20.9% for the merged entity.

Aloke Lohia, group CEO at Indorama Ventures, says: “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.”

Platform for emerging markets

Indorama Ventures will hold 51.8% stake in the merged entity. 

Goldman Sachs is acting as financial advisor to the transaction. Trilegal is acting as legal counsel to EPL, and Khaitan & Co and Chandhiok & Mahajan are acting as legal counsels to Indovida India. 

Animesh Agrawal, managing director at Blackstone and a director on EPL’s board, comments: “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, organic and inorganic.”