Friday, April 12, 2024

JK Paper diversifies further with Manipal Utility Packaging Solutions takeover

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During its meeting on 16 October 2023, the Board of JK Paper approved the acquisition of Manipal Utility Packaging Solutions, led by Gautham Pai, for Rs 88.72 crore. This transaction involves the purchase of 4.07 crore equity shares, each with a nominal value of Rs 10, at a rate of Rs 21.80 per share, representing the entirety of the company’s capital.

In accordance with this acquisition, JK Paper has entered into a Share Purchase Agreement (SPA) to obtain 100% of the shares of Manipal Utility Packaging Solutions (MUPSPL). Under the terms of the SPA, JK Paper will acquire the 4.07 crore equity shares, each with a face value of Rs 10, for Rs 21.80 per share, subject to adjustments specified in the agreement.

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The company anticipates the completion of this acquisition within six weeks from the execution of the SPA, provided that all conditions outlined in the agreement are met.

Harsh Pati Singhania, vice chairman and managing director of JK Paper, said, “This acquisition aligns with the company’s long-term strategic goals in the packaging industry. It allows us to provide comprehensive solutions to customers in secondary and tertiary packaging, enhance operational efficiencies, and ensure the growth and value addition of MUPSPL for our stakeholders.”

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MUPSPL specializes in the manufacturing of packaging products, including folding cartons, corrugated boxes, and labels, operating from four manufacturing facilities across India. The company reported a revenue of Rs 147.77 crore for the fiscal year 2022-23.

In November 2022, JK Paper had previously announced the acquisition of Horizon Packs and Securipax Packaging for approximately Rs 578 crore. Horizon Packs, established in 2021 and headquartered in Mumbai, operates six plants across India, from the north in Rudrapur, Baddi, and Roorkee to the south in Tindivanam, Harohalli, Pondicherry, Chennai, the west in Khamgaon, Nagpur, and the east in Kolkata. Securipax Packaging has its manufacturing facility in Roorkee, with a customer base primarily in the food & beverage and FMCG segments.

These strategic moves by JK Paper solidify the company’s presence in the printing and packaging conversion sector. Alongside the upcoming corrugated facility in Ludhiana, JK Paper is poised to become the leading player in the corrugated packaging industry.

The editorial team of The Packman who handle all the press releases with Sunil Jain working as the desk editor.

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