India’s largest paper manufacturer JK Paper Ltd will become a significant player in the corrugated or brown box sector with the acquisition of Mumbai-based Horizon Packs Pvt Ltd and Uttarakhand-based Securipax Packaging Pvt Ltd.
JK Paper informed the Securities and Exchange Board of India (SEBI) that its board of directors had on Monday approved the acquisition of both companies at its meeting.
JK Paper has entered into a separate share purchase and shareholders’ agreement with the promoters and shareholders of both firms.
Industry sources said Horizon Packs Pvt Ltd is the biggest player in the corrugated box sector. JK paper is also setting up a corrugated paper manufacturing plant in North India.
Corrugated paper is used in the making corrugated or brown box in which consumer products ranging from electronics to electricals, FMCG, white goods, and e-commerce items are packed.
With China emerging as a key buyer of corrugated paper in the global market, its demand has increased over the past two years. Beijing is importing corrugated paper as the Xi Jinping administration has banned imports of wastepaper or waste cuttings.
On Tuesday, shares of JK Paper were down by 1.5 per cent at ₹413.75.