Shish Industries Ltd has approved the sale of its complete stake in Varni Wood & Paper Packaging Private Limited (VARNI), months after adding the subsidiary to the fold. The move is a sharp turnaround from the expansion plans made by the company in September 2023.
Principal points:
Board authorizes disposal of 100% interest in VARNI
After acquiring several businesses, including Varni Packaging, recently.
The original investment was not to exceed ₹54 lakh.
VARNI was expected to diversify Shish's product offering into wood and paper packaging.
This move is surprising, as Shish Industries had previously shown eagerness to diversify its product portfolio. The company had already placed VARNI at the center of its expansion plans in the wood and paper packaging business.
Shish Industries has not disclosed the motivations for this sudden about-face or the terms of the divestment financially yet. The decision creates questions regarding the future strategic path of the company and its growth plans in the packaging sector.
Sources: Shish Industries Regulatory Filing, Business Standard, March 21, 2025