JK Paper tells SEBI it is acquiring Horizon Packs, Securipax

JK Paper has entered into a share purchase and shareholders' agreements (SPSHAs) for the acquisition of 85% shares of Horizon Packs (HPPL) as well as Securipax Packaging (SPPL). With this move, India’s largest paper manufacturer JK Paper will become a major player in the corrugated or brown box sector.

JK Paper had informed the Securities and Exchange Board of India (SEBI) that its board of directors had approved the acquisition of both companies at its meeting.

Horizon Packs (established in 1991) has factory locations in Rudrapur, Baddi and Roorkee in the north as well as Tindivanam, Harohalli, Pondicherry and Chennai in the south to Khamgaon and Nagpur in the west and Kolkata in the east. Horizon Packs is a 100% family owned but run professionally and the factories are powered by a fleet of BHS lines. Last year the company made a raft of key investments at its plants and in its IT and data infrastructure in order to better serve its existing and potential customers.

Key customer segments for the company constitute food & beverage, FMCG, pharma, white goods, etc.

Securipax Packaging has its manufacturing facility at Roorkee. Key customer segments for the company constitute food & beverage, FMCG, etc.

Together, HPPL and SPPL are India's largest corrugated packaging manufacturers with plants across India. As per business report, in FY 2021-22, HPPL and SPPL had a consolidated revenue of Rs 832 crore.

The company will acquire the balance 15% stake in HPPL and SPPL within a period of three years, as per the respective SPSHAs.

Corrugated paper is used to manufacture corrugated or brown boxes 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, the kraft paper demand has increased over the past two years. Beijing is importing corrugated paper as the Chinese government has banned imports of wastepaper or waste cuttings.