Aureos South Asia Fund invests in rapidly growing Indian paper packaging company
The Aureos South Asia Fund (“ASAF”) has completed a US$7 million investment in Sai Security Printers Private Limited ("Sai"). Sai is a leading paper packaging company based in Faridabad and Bangalore, India.
ASAF is managed by Aureos South Asia Managers Ltd, a subsidiary of Aureos Capital Limited, a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets.
Sai started out as a security printing business and transformed itself into a multi-product packaging company, manufacturing labels and mono-cartons for food and beverage, pharmaceutical and FMCG industries. The company employs 600 people and has seen its paper packaging arm increase to 76% of revenue in 2011. There are plans in place to open a new facility at Bangalore and expand the existing facility in Faridabad, Harayana.
Balaji Srinivas, Managing Partner, Aureos India, says: "Sai has a strong customer base, marked by high customer retention. Its strategy for future development includes expansion into recession resilient and higher margin products for the pharmaceutical, beverages and FMCG sectors."
"Our team will work closely with Sai's experienced management team helping it to become a major player across geographies in the Indian packaging market. We look forward to working with Sai to enhance the company’s already excellent credentials."
Vijay Raghavan, MD, Sai Security Printers, says: "We are delighted to have Aureos as our financial partner in taking Sai (including it's division Sai Packaging Company) on its next growth trajectory. Sai will use the funds to build on its already strong production and technology capabilities and will work towards moving into new markets, adding new customers and providing end-to-end packaging and printing solutions to its customers while increasingly focussing on high margin business. We believe that there is a large opportunity in the domestic and export markets for firms that are willing to invest in innovation and quality and Sai is well positioned to take advantage of that."