Singapore and Bengaluru: Asian private equity firm ADV Partners and Premji Invest announced today that they have acquired a significant majority stake in leading plastic molding company Micro Plastics Private Limited (MPPL).

This investment will catalyze the next stage of MPPL’s growth plans by supporting significant expansion and development of new manufacturing facilities to cater to increasing demand from customers. The investment also builds on MPPL’s success and robust revenue growth of over 20% over the past five years in CAGR terms.

MPPL is headquartered in Bengaluru and operates five manufacturing facilities in and around the city. MPPL founder and managing director, Mr. Vijendra Babu, a 25-year industry veteran, will continue to retain a stake in the business and drive the company along with a very experienced senior leadership team.

Commenting on the investment, Mr. Suresh Prabhala, co-founder and managing partner at ADV Partners, said, “The market opportunities for Micro Plastics are significant and, together with Premji Invest, ADV Partners looks forward to working with Mr. Babu to significantly grow the business as well as to help build the toy manufacturing ecosystem within India, through skill development and other initiatives.

 “ADV Partners’ investment in Micro Plastics is a continuation of our efforts to back Indian entrepreneurs who have established market leadership in specific manufacturing segments in India while contributing to the Indian government’s long-term ‘Atmanirbhar’ (self-reliance) vision.”

A Premji Invest spokesperson said, “Premji Invest is excited to partner with ADV Partners and the MPPL team to build out a globally competitive business of manufacturing toys and plastic components for other industries.

 “Under the leadership of Mr. Babu, MPPL has scaled to become the largest toy manufacturer in India over the past few years. With the government’s push towards local manufacturing, and global customers increasing their outsourcing to India, our intent is to further develop MPPL  as a trusted partner in delivering quality products consistent with the highest standards of ethics and governance.”

MPPL offers an integrated one-stop solution for its customers, from designing to shipping final products for diverse industries ranging from toys and model hobby kits to sports equipment.

With the support of the central government and state governments, through the respective introductions of toy clusters and the Bureau of Indian Standards (BIS) certification for toys, the toy manufacturing ecosystem in India is primed to grow and well-positioned to benefit from strong tailwinds in the near future.

MPPL is ideally placed to play a leading role in India’s development as a hub for such manufacturing, catering to both domestic and export markets for large multinational clients.

Mr. Babu said, “We are very excited to bring ADV and Premji Invest onboard as our investors to chart MPPL’s next phase of growth. The toy sector in India holds lot of potential both on the export and domestic fronts. MPPL has emerged as a key Indian contract manufacturer for leading global brands, and we look to build these relationships further. We also look forward to broadening our footprint in consumer goods, healthcare, and sports among other sectors.”