From India to Italy and Beyond: Kapur Plastipack’s Game-Changing Joint Venture and Multi-Crore Expansion Unveiled

Updated: November 10, 2025 23:46

Image Source: Kanpur Plastipack

Kapur Plastipack Limited has approved a 50:50 joint venture with Italy’s Essegomma S.p.A. to jointly market high-performance polypropylene yarns in India. Concurrently, the company greenlights Rs. 105.26 crore capital expenditure on capacity enhancement, modern roll management, logistics, and diversification into non-woven products.

In a significant move to augment its product portfolio and technological prowess, Kapur Plastipack Limited’s Board of Directors, in a meeting held on November 10, 2025, accorded in-principle approval for a joint venture with Italian multifilament yarn manufacturer Essegomma S.p.A. The new venture, a 50:50 partnership, will establish an independent company in India focusing on sales, marketing, trading, and distribution of premium technical polypropylene yarns.

This strategic alliance leverages Essegomma’s European expertise in Taslan yarn technology combined with Kapur Plastipack’s advanced manufacturing capabilities. The joint venture targets both global technical yarn markets and high-end textile applications domestically, promising diversification and access to luxury textile segments.

Key partnership terms include equal board representation (four directors, two from each party) and pre-emptive rights on share issuance, ensuring balanced control without altering Kapur Plastipack’s management structure. The parties maintain right of first refusal on share transfers, underscoring the transaction’s arm’s length nature without any related party involvement.

Alongside this joint venture announcement, Kapur Plastipack has approved a sizeable capital expenditure plan of Rs. 105.26 crore, aimed at infrastructure modernization and business diversification:

Rs. 47.22 crore for expanding the Flexible Intermediate Bulk Container (FIBC) division through a new building at Unit 3 (Gajner Road), enhancing capacity by up to 6,000 MT over five years
Creation of a modern roll management system with advanced racking for optimized inventory and operational safety
Construction of owned warehousing facilities for the Trading Division to replace rented premises, boosting logistics efficiency
Rs. 58.04 crore for a greenfield facility to manufacture non-woven fabrics using needle-punching technology, enabling Kapur Plastipack’s entry into fast-growing segments like automotive interiors, artificial leathers, shoe insoles, and exhibition carpets

These CAPEX initiatives will be funded through a mix of internal accruals and term loans, marking a clear push towards enhancing product mix, capacity, and profitability through innovation and market expansion.

Kapur Plastipack’s proactive collaboration with Essegomma and focused CAPEX strategy positions the company to capitalize on growing demand for technical yarns and specialty fabrics, reinforcing its reputation as a technologically advanced and diversified textile solutions provider.

Sources: Kapur Plastipack Limited official announcement, market news portals Marketscreener and EquityBulls.

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