JK Paper gains on acquiring majority stake in Horizon Packs and Securipax Packaging

22 Nov 2022 , 09:38 AM

Horizon Packs is the largest Corrugated Packaging company in India. The company has six plants across India. Key customer segments for the company constitute food & beverage, FMCG, pharma, white goods, etc. Securipax Packaging has its manufacturing facility at Roorkee. Key customer segments for the company constitute food & beverage, FMCG, etc. HPPL and SPPL together are Indias largest Corrugated Packaging manufacturers with seven plants across the country. In FY 2021-22, HPPL and SPPL had consolidated revenue of Rs 832 crore. Purchase consideration for acquisition of 85% of equity shares of HPPL will be Rs. 19.33 per equity share and of SPPL will be Rs. 1,256.95 per equity share, subject to adjustments as per terms of respective SPSHAs. JK Paper will acquire 26.92 crore equity shares of HPPL, representing 85% of capital. It will also acquire 4.63 lakh equity shares of SPPL, representing 85% of capital. The company will acquire the balance 15% stake in HPPL and SPPL within a period of three years, as per the respective SPSHAs. 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. Harsh Pati Singhania, vice chairman and managing director, JK Paper, said, ?It is a privilege to join hands with Indias largest player in the Corrugated Packaging segment. This together with JK Papers 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.? JK Paper is the market leader in branded copier paper in India and amongst the top producers of coated paper and packaging boards in the country. The company is consistently following a policy of focusing on value added products like copier, bond, security, coated papers, virgin fibre packaging boards, high-end maplitho, food grade papers and boards. The companys consolidated net profit zoomed to Rs 324.23 crore in the quarter ended September 2022 as against Rs 118.39 crore during the previous quarter ended September 2021. Sales rose 74.09% to Rs 1644.10 crore in Q2 FY23 over Q2 FY22. Powered by Capital Market – Live News