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.