JK Paper invests INR 578 crore to expand its corrugation business and buys the majority stake

JK Paper invests INR 578 crore to expand its corrugation business and buys the majority stake

New Delhi | 27th November 2022 | The Pulp and Paper Times: 

JK Paper, one of India’s largest Paper & Packaging Board Companies, entered into Share Purchase and Shareholders’ Agreements (SPSHAs) for the acquisition of 85% shares of Horizon Packs Private Ltd. (HPPL) and Securipax Packaging Private Ltd. (SPPL), and the balance 15% within a period of 3 years as per the respective SPSHAs. 

JK Paper said it will acquire Horizon Packs Private Ltd and Securipax Packaging Private Ltd in phases for about Rs 578 crore.

HPPL and SPPL together are India’s largest Corrugated Packaging manufacturers with seven (7) plants across the country. In FY 2021-22, HPPL and SPPL had a consolidated Revenue of Rs. 832 Cr. Corrugated Packaging is a rapidly growing segment in the Indian Paper & Packaging industry driven by growth in end-use industries such as Food & Beverage, FMCG, etc. 

Speaking on the occasion, Mr. Harsh Pati Singhania, Vice Chairman and Managing Director, JK Paper Ltd. said, “It is a privilege to join hands with India’s largest player in the Corrugated Packaging segment. This together with JK Paper’s upcoming corrugated facility in Ludhiana will establish it as the largest player in the corrugated packaging industry. 

The shift in consumer preferences are driving demand for superior quality, eco-friendly packaging. This acquisition gives us an opportunity to benefit from the existing strengths of HPPL and SPPL. HPPL and SPPL’s customers, employees, vendors and partners will benefit from JK Paper’s strong manufacturing knowledge and experience, its high standards in operational excellence, financial management and corporate governance.”

JK paper will acquire 26.92 crore equity shares in HPPL for Rs 19.33 per share and 4.63 lakh equity shares for Rs 1,256.95 apiece in SPPL -- representing an 85 per cent stake in each company.
 

Web Title: JK Paper invests INR 578 to expand its corrugation business and buys the majority stake