JK Paper to acquire Horizon Packs & Securipax Packaging for Rs 578 crore

Modi family to divest 85% immediately and balance 15% within three years

169
Corrugated sheets Photo Roberto Sorin Unsplash |JK Paper
Corrugated sheets Photo Roberto Sorin Unsplash

PTI on 21 November 2022 reported that JK Paper and Horizon Packs and Securipax Packaging both owned by the Mumbai-based Modi family have entered into a share purchase and shareholders’ agreement will acquire the leading corrugator’s business for approximately Rs. 578 crore (about US$ 71 million). HPPL and SPPL are India’s leading corrugated packaging manufacturers with seven plants across the country, the company said in a regulatory filing. In addition, JK Paper is itself building a large corrugated greenfield plant in Ludhiana on a 17-acre plot it purchased in August 2021.

“JK Paper has entered into a share purchase and shareholders’ agreements for the acquisition of 85% shares of Horizon Packs Private Ltd (HPPL) and Securipax Packaging Private Ltd (SPPL), and the balance 15% within 3 years as per the respective SPSHAs,” according to the regulatory filing.

JK paper will acquire 26.92 crore equity shares in HPPL for Rs 19.33 per share and 4.63 lakh equity shares in SPPL for Rs 1,256.95 each – representing 85% of the shares in each of the two companies.

Incorporated in 2021, Horizon Packs is headquartered in Mumbai and has six plants across India. Delhi-based SPPL, incorporated in 1980, has its manufacturing facility at Roorkee.

“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,” JK Paper vice chairman and managing director Harsh Pati Singhania said.

He added that the shift in consumer preferences is driving demand for superior quality and 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,” Singhania said.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here