JK Paper to invest Rs 90-cr in Manipal Utility Packaging Solutions

JK Paper has secured board approval for the purchase of Manipal Utility Packaging Solutions (MUPSPL) at a cost of Rs 88.7 crore. The acquisition is slated for completion within six weeks following the signing of the Share Purchase Agreement (SPA).

17 Oct 2023 | By Aditya Ghosalkar

JK Paper will acquire Rs 4.07 crore equity shares representing 100 % of capital of Manipal Utility Packaging Solutions (MUPSPL)

One of the largest Indian paper manufacturing companies in India, JK Paper commissioned production at its packaging board plant in Gujarat in January 2022. Built with a Rs 14.5 billion investment, the plant was to upscale the company’s annual capacity from 4.5 lakh tonnes to 6.25 lakh tonnes. Since then, JK Paper has aimed to establish a foothold in the packaging board segment.

JK also acquired 85% stake in two corrugated packaging firms. Readers of PrintWeek and WhatPackaging? will recall that JK Paper announced its acquisition plan for Horizon Packs (HPPL) and Securipax Packaging (SPPL) for about Rs 578-crore in November 2022.

The company is set to bolster its presence in the packaging market by purchasing Rs 4.07 crore equity shares, which represent the entire capital of Manipal Utility Packaging Solutions (MUPSPL). The acquisition will be made at a price of Rs 21.80 per equity share with a face value of Rs 10 each, and any necessary adjustments will be carried out as specified in the agreement.

The acquisition is expected to be completed within six weeks of execution of the SPA with the target entity and its promoters/shareholders, subject to fulfilment of conditions mentioned in the SPA, the company said.

On the acquisition announcement,  JK Paper vice chairman and managing director, Harsh Pati Singhania said, "The acquisition gives us an opportunity to offer combined solution to the customers with respect to secondary and tertiary packaging, improve operational efficiencies, and ensure that MUPSPL grows and adds value to stakeholders."

MUPSPL  is a 100% subsidiary of Manipal Technologies (MTL). The company is engaged in the business of manufacturing packaging products like folding cartons, corrugated boxes and labels with four manufacturing plants across India.

Packaging business is amongst the fastest growing segments in the Indian paper and packaging industry driven by growth in end use industries such as food and beverage, and FMCG, it added.

Tags : JK Paper
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