Glass packaging manufacturer renamed as PGP Glass, to chase global leadership in premium perfumery and cosmetics, and specialty spirits markets
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Billionaire industrialist Ajay Piramal’s first acquisition was of Gujarat Glass in 1984, when he was just 29. This month, the company—renamed Piramal Glass in 2008—that manufactures glass packaging for pharmaceutical, cosmetics, perfumery, and specialty food and beverage, has entered a new phase in its corporate journey, acquiring a new parent and a new brand name.
Blackstone acquired the company from the Piramal Group for a valuation of $1 billion in late 2020—the largest ever transaction for a packaging company in India—elbowing out other suitors such as Partners Group AG and Bain Capital. The deal was completed on March 31 and the company, whose near-4,000 staff has been retained, will now have a new name—PGP Glass.
What made Blackstone interested in an old-world, manufacturing company like Piramal Glass is that it is a global specialist in its space. “Blackstone is betting on the fact that well capitalised companies, which have the ability to add capacity, will benefit because the end use of glass is going to increase,” a person with direct knowledge of the deal told Forbes India. The glass packaging market grows each year approximately by 9 to 10 percent.
Globally, every second nail polish bottle has been made by Piramal Glass. With four manufacturing facilities—one in Missouri, USA; one in Horana, Sri Lanka, and two in Kosamba and Jambusar in Gujarat—80 percent of its revenues come through exports. Piramal Glass currently produces 1,475 tonnes per day, at 12 furnaces for 65 production lines. Its clients include global companies such as Coty, L’Oréal, Diageo, Pernod Ricard and Sanofi. It is one of the few players, globally, using the type-1 glass vials and infusion bottles suitable for complex pharmaceutical products like liquid injectable and oncology drugs.
All of this makes Piramal Glass a highly valued company. It now competes for attention from private, wealthy investors in the crowded basket of 100 unicorns which typically comprise tech-enabled education, logistics, payments, ecommerce and software-as-a-service (SaaS) startups. These, including Piramal Glass, were showcased by Credit Suisse at an investor summit, outlining India’s changing corporate landscape.