HSIL Limited has signed a Share Purchase Agreement (SPA) with existing promoter shareholder of Garden Polymers Pvt. Ltd. With the agreement, HSIL would acquire 60% stake in all cash deals for its shareholders and the 40% stake would be bought by promoter group of HSIL.

Garden Polymers is a leading PET bottle, cap and closure manufacturer. The company has agreed upon a total deal size of 100% stake for a sum of 89 Crores. They have two plants strategically located in Dharwad, Karnataka and Selaqui, Uttrakhand. Garden Polymer Pvt. Ltd. is fully equipped with imported state of the art machines and moulds and also enjoys a “leading supplier” status. Garden’s large PET bottle users are in Liquor, Pharma and FMCG industries. Garden proves to be the 4th largest player in the organized PET bottles segment, with the plastic industry in India being around 16000 Crores. The company holds a turn over of 104 Crores for the year 2011.

With the acquisition of Garden Polymers which shares its synergies with container glass division of HSIL, HSIL will be able to offer a wider range of packaging solutions to its customers. HSIL Limited targets to invest in the PET bottle market to grow at a CAGR of 14-15% p.a. over the next five years. The growth avenues are plenty besides Liquor, Pharma and FMCG sectors; there are other major users of PET Bottles including, food and beverages, edible oil, milk, mineral water and carbonated drinks; which are yet to be explored by Garden. HSIL targets to invest in the same and grow this brand.