SRF Ltd will enter into the cast polypropylene (CPP) film business by acquiring the entire plant and machinery from Kanpur Plastipack Ltd (KPL) for ₹49.25 crore, the company said in a stock exchange filing on Tuesday.
SRF has entered into a binding agreement to acquire and purchase plant and machineries, along with spare parts related to CPP films, subject to closing conditions, it said in the filing.
The transaction is expected to close in the coming months. Upon closure, the assets will be relocated and installed at SRF’s state-of-the-art facility in Indore.
KPL diversified into CPP film manufacturing two years ago with a newly installed line that had an annual capacity of 7,200 million tonnes per annum. The line was capable of producing seven-layer high-barrier transparent films and other value-added films.
The acquisition of KPL’s non-core entity comes on the back of the wide range of use cases for CPP, which is more durable than biaxially oriented polypropylene (BOPP) films and has a lot of rising demand for its end-uses in sectors like packaged consumer goods, automotive, and pharmaceuticals.
Other global players in this market include Amcor, Sealed Air, Mondi, while domestic competitors include Uflex, Polyplex, Emperial, Sparsh, Pasupati and Kalpna.
SRF portfolio
With this acquisition, SRF will add a new product line to expand and complement its existing offerings and complete its product portfolio in flexible packaging films, including BOPP, BOPET, and CPP.
Singhi Advisors acted as an exclusive strategic and financial advisor to KPL.
Founded in 1970, Gurugram-based SRF specialises in the manufacturing of industrial and speciality intermediates. The company’s business portfolio includes fluorochemicals, speciality chemicals, packaging films, technical textiles, and coated and laminated fabrics.
With over 8,000 employees, SRF operates eleven manufacturing plants across India and additional facilities in Thailand, South Africa, and Hungary, exporting products to over 90 countries worldwide.
Meanwhile, KPL specialises in products such as Flexible Intermediate Bulk Containers (FIBCs), also known as bulk bags or jumbo bags, polypropylene (PP) multifilament yarn, PP woven sacks and exports packaging solutions to over 50 countries.
Currently, the company operates three state-of-the-art manufacturing facilities in Kanpur, India, covering a combined area of approximately 800,000 square feet. These fully integrated plants enable the company to maintain stringent quality control measures across its product lines.
