India’s largest paper producer JK Paper Ltd will change into a major player in the corrugated or brown field sector with the acquisition of Mumbai-based Horizon Packs Pvt Ltd and Uttarakhand-based Securipax Packaging Pvt Ltd.
JK Paper knowledgeable the Securities and Exchange Board of India (SEBI) that its board of administrators had on Monday accepted the acquisition of each firms.
JK Paper has entered right into a separate share buy and shareholders’ settlement with the promoters and shareholders of each corporations.
Chinese issue
Industry sources mentioned Horizon Packs Pvt Ltd is the most important player in the corrugated field sector. JK paper can be establishing a corrugated paper manufacturing plant in North India.
Corrugated paper is used in the making corrugated or brown field in which client merchandise starting from electronics to electricals, white items, and e-commerce gadgets are packed.
With China rising as a key purchaser of corrugated paper, the demand has elevated over the previous two years. Beijing is importing corrugated paper because the Xi Jinping administration has banned imports of wastepaper or waste cuttings.
On Tuesday, shares of JK Paper have been down by 1.5 per cent at ₹413.75.