Kanpur Plastipack Ltd Divests CPP Division to SRF Limited for ₹492.5 Million

Kanpur Plastipack Limited (KPL), a prominent manufacturer of Flexible Intermediate Bulk Containers (FIBCs), Polypropylene (PP) Multi-Filament Yarn, and Cast Polypropylene (CPP) films, has announced that it is going to sell off its CPP division to SRF Limited for ₹492.5 million.

 

This strategic move coincides with KPL's focus on core competencies and should help in streamlining operations, as well as enhancing financial standing. While contributing towards a moderate faring in terms of KPL's operating turnover for Q1 FY2025, the CPP division has also dragged along profitability margins under the weight of interest and depreciation costs of the CPP project. The divestment will replenish KPL to divert and focus its resources effectively on its primary product lines, thereby enhancing operational efficiency. 

 

As a diversified chemicals conglomerate, SRF Limited will integrate KPL's CPP assets into its packaging films segment, thus improving its production capacity and extending its market access in the CPP film industry. 

 

The acquisition represents strategic repositioning for both companies-the KPL will continue its thrust on older product categories, while SRF would add strength to its position in the packaging sector by integrating the CPP assets. 

 

Source: Kanpur Plastipack Limited