Moglix acquires Khatema Fibres for Rs 80 crore

As per a business report, the Indian e-Commerce company Moglix has acquired Khatema Fibres in a deal worth INR 80 crore (USD10.9m). As per market experts, the move will bolster Moglix's portfolio of sustainable packaging products.

The firm will tap into Khatema Fibres' range of speciality high-strength kraft paper, food-grade packaging and machine-glazed paper. Khatema's product range also includes machine-finished papers, tissue variants, sublimation paper, virgin test liners, and food-grade packaging solutions.

Khatema Fibres which was founded in 1990 specialises in manufacturing sustainable paper products. The group has an annual capacity of 50,000 metric tons.

Meanwhile Moglix, founded in 2015 by Rahul Garg, operates an online platform offering electrical supplies, power tools, motors, and medical equipment. The group operates an expansive packaging business and aims to tap its network of more than 10,000 manufacturers and 3,000 factories to scale up its offering in the sustainable packaging sector.

The kraft paper industry in India is expected to grow rapidly, reaching USD 86bn by 2029..

Backed by Tiger Global and Accel, Moglix, valued at USD2.6 billion, aims to tap its expansive network of over 10,000 manufacturers and 3,000 factories to scale this category. Moglix launched its packaging business nearly five years ago and is among the largest in the business-to-business e-commerce packaging space.