The board of directors of JK Paper, one of India’s largest paper and packaging solutions companies, on 13 December approved a composite scheme of arrangement aimed at consolidating its subsidiaries and expanding its market footprint.
Accordingly, three wholly-owned subsidiaries — Horizon Packs Private Ltd, Securipax Packaging Private Ltd, and JKPL Utility Packaging Solutions Private Ltd — will be merged into JK Paper Ltd, the company announced in a press release.
“The board of directors of JK Paper Ltd (JKPL)in its meeting held today approved a Composite Scheme of Arrangement (Scheme) of, inter alia, JK Paper Ltd and Horizon Packs Private Ltd, Securipax Packaging Private Ltd, JKPL Utility Packaging Solutions Private Ltd, which are wholly owned subsidiaries of JKPL and Enviro Tech Ventures Ltd,” a press release dated 13 December stated.
The board also approved the acquisition of a majority stake in Radhesham Wellpack Private Ltd (RWPL). JKPL entered into a share purchase and shareholders’ agreement for the acquisition of 60% shares of RWPL upfront. The balance of 40% will be acquired within a period of two years. RWPL is engaged in the manufacture of corrugated boxes, corrugated sheets, and other corrugated packaging-related work/ products.
As part of the scheme, the three wholly owned subsidiaries of JKPL engaged in the manufacturing of packaging products and solutions will be merged with JKPL to create a consolidated paper and packaging company. Sirpur Paper Mills Ltd will become a direct subsidiary of JKPL.
The scheme is subject to requisite approvals from the stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal (NCLT), and other statutory and regulatory authorities. The transaction is expected to be completed in 12 months subject to regulatory approvals.
Harsh Pati Singhania, chairman and managing director of JK Paper, said, “The composite scheme of arrangement approved by the board would result in the consolidation of the paper and packaging businesses and streamline the corporate structure bringing in efficiencies in operations, processes, and ease of compliances. This will help us serve our customers better. The acquisition of RWPL is in line with the long-term strategic objective of the company in the packaging business and allows us to have a greater footprint in the western region”.
JK Paper is a market leader in branded copier paper in India and among the top producers of coated paper and packaging boards in the Country. The company makes value-added products such as copier, bond, security, coated paper, virgin fiber packaging boards, high-end maplitho, food grade paper, boards, corrugated boxes, mono cartons and labels.
