New Delhi, July 14 -- Canpac Trends Pvt Ltd, which is backed by Bahraini alternative investment firm Investcorp, is doubling down on an acquisition-led strategy to transform itself from a folding carton maker into an end-to-end packaging materials platform with its latest takeover-the fifth in four years-reinforcing that game plan, a top executive told VCCircle.

Founded in 2011, the Ahmedabad-based company began operations as a manufacturer of folding cartons and corrugated boxes. Since then, it has broadened its portfolio to include paper bags, flexible packaging, premium and luxury boxes, blister backer cards, holograms and security labels. Today, Canpac serves more than 600 customers.

Fifth acquisition

Canpac, which also counts JM Financial Private Equity as an investor, recently acquired Ahmedabad-based folding carton and rigid box manufacturer Krishna Creation to deepen its presence in the premium and luxury packaging market.

In a LinkedIn post, the company described the acquisition as the "next chapter" in its journey, highlighting its transition from a regional folding carton manufacturer into a diversified packaging platform with 10 manufacturing plants. "The move sharpens Canpac's presence in the speciality, gift and premium packaging segment, a space where designs and finish, not scale alone, define who wins the customer's trust," the company said in the post.

Speaking to VCCircle, director Nilesh Todi said, "The premium end - where brands pay for shelf presence, unboxing experience and anti-counterfeit assurance rather than just containment - is growing several times faster than the base. Personal care and cosmetics alone are forecast to compound at over 8% through 2031."

However, he declined to disclose the transaction size, saying it was "unremarkable in size" and relatively smaller compared with its previous acquisitions.

During FY25 and FY26, Canpac invested around Rs 270-280 crore ($28-29 million) in organic and inorganic expansion, VCCircle has learnt. Part of this was funded through an equity infusion of Rs 117 crore from Investcorp in FY25. The company declined to comment.

The acquisition of Krishna Creation also gives Canpac a specialized manufacturing facility focussed on premium cartons and rigid boxes, helping it offer customers the full range of packaging (from mass-market cartons to premium unboxing experiences) without requiring them to switch vendors.

"When you supply folding cartons, paper bags, corrugated, flexibles and security labels to the same 600 brands, the customer does not want a supplier for each layer of sophistication," Todi explained. "They want one relationship that can go from a mass-market carton to a premium unboxing experience without changing vendors. We were losing the top end of that ladder to specialists. Now, we are not."

Canpac will fund the acquisition through internal accruals, Todi said, adding that the integration will take place "without any margin dilution".

Krishna Creation's operations will run out of a jointly developed greenfield facility in Ahmedabad, which will now anchor Canpac's premium folding carton and luxury box capability.

Krishna Creation's customer base includes business conglomerate Welspun, beauty and personal care firm Renee Cosmetics, home textiles company Indocount, doors and windows maker Damson, and home textiles firm Trident.

Margin boost amid acquisition spree

According to Todi, Canpac's acquisition strategy is well thought out, resulting in margin improvement for every acquired target.

Canpac made its first acquisition in 2022 when it bought Kolkata-based Manisha Creations, after raising Rs 60 crore in its first institutional fundraise from JM Financial PE. The deal gave Canpac access to India's eastern market through Manisha Creations' long-standing customer relationships. .

In late 2023, Investcorp led a Rs 340-crore funding round in Canpac, comprising a primary infusion and a secondary transaction, which included the purchase of part of JM Financial PE's stake. Investcorp currently holds 36% of Canpac. In 2024, the firm acquired Altpac, which offers sustainable e-commerce packaging solutions.

In April 2025, Canpac acquired Silvassa-based Saptagiri Packaging, entering the blister backer packaging segment, a plastic preformed packaging cavity used in consumer goods and pharmaceutical products.

Four months later, it bought Greater Noida-based Shriram Veritech Solutions, adding optically variable devices, holograms, and security labels to its portfolio. Todi described the acquisition as a "brand-protection business" that was once unrelated to cartons but is now most in demand among FMCG customers.

In FY26, the company reported stronger financial performance, Todi said. Operating margins have improved to 17-18% from around 14-15% since FY23. In FY25, Canpac's net sales had surged 55% to Rs 627 crore, according to Tracxn.

"Five deals. Margins up, throughput up, in every manufacturing business acquired," Todi said, attributing the gains to centralized planning, procurement, and sales; plant-level accountability, and building senior leadership teams ahead of expansion.

Todi said Canpac draws inspiration from Chinese manufacturing culture, not for cost arbitrage but for "systems discipline and its willingness to do ordinary things extraordinarily well, repeatedly."

"We are not trying to be the highest-quality producer in India, and we are not trying to be the cheapest," Todi said. "We are trying to deliver the right product, at the right price, at the right time. That is a harder discipline than either of the other two, and it is the one Indian manufacturing actually needs."

VCCircle had reported last year that Canpac was also looking to acquire Hyderabad-based Arunodaya Print Pack Pvt Ltd and folding carton manufacturer Borkar Packaging Pvt Ltd. While Borkar was eventually bought by JK Paper, no deal involving Arunodaya has yet been announced. A person familiar with the matter said the deal with Borkar fell through due to valuation mismatches.

Todi said Canpac continues to "actively" scout for companies for acquisitions. "We have completed five, and we are in conversation about more. We will keep filling gaps adjacent to what we already manufacture," he said.

The next chapter

With acquisitions expanding both its footprint and product portfolio, Canpac has set its sights on becoming the one-stop shop for all packaging needs.

"Very few companies in India can put that entire range in front of a single FMCG customer. The next chapter is making that breadth genuinely single-window: one relationship, one planning system, one quality standard, across every pack a brand uses," Todi said.

The company plans to double its manufacturing plants to 20 by FY30 while targeting annual revenue of Rs 1,800-2,000 crore going forward. It may sound ambitious, but Todi believes it's "not a stretch case. It is the capacity we are already building."

On a potential public listing, he said, "We are building a business that is ready to be listed. Whether we list is a separate decision, and it is not one we have taken."

Published by HT Digital Content Services with permission from VC Circle.