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MaxVIL exits packaging film business, to focus on real estate

Toppan will buy 51 percent stake in Max Speciality Films Ltd for an enterprise value of Rs 1,350 crore.

November 15, 2021 / 09:22 AM IST
Representative image.

Representative image.


Max Ventures & Industries Limited (MaxVIL) of the Max Group, on November 15, announced that it had sold its entire stake in the specialty packaging films business to its existing joint venture partner Japan-based Toppan Printing. Max Speciality Films is a 51:49 strategic partnership with Toppan.

The company plans to focus on the real estate business, which it runs through 100 percent subsidiary Max Estates.

The Board approved the divestment of the remaining 51 percent shareholding in Max Speciality Films Ltd to Toppan Inc in two separate tranches at an enterprise value of Rs 1,350 crores, Max VIL said in an exchange filing.

Toppan will buy a 51 percent stake in Max Speciality Films Ltd for an enterprise value of Rs 1,350 crore, translating into an equity value of about Rs 600-650 crore (subject to customary adjustments), Max VIL said.

Toppan would also be taking over the debt of MSFL as part of the deal, it added.

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Max Speciality Films is one of the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films, including specialty packaging, labels, coating and thermal lamination films, with a total capacity of 72-kilo tonnes per annum.

The firm said that post this exit, the company will "completely focus on the real estate business in the premium residential and commercial space in Delhi-NCR".

Commenting on the stake sale, Sahil Vachani, MD & CEO of MaxVIL, said, "The decision to divest our residual 51 percent stake in specialty packaging business to the existing partner is to generate additional growth capital to deploy in the real estate business that offers tremendous growth opportunities.”

The Board also authorized its Investment and Finance Committee to explore various modalities for restructuring with its wholly-owned subsidiary Max Estates Ltd and be renamed as Max Estates Ltd after receiving required statutory approvals.

"The change of name will bring better synergies between the name and the operations of the company," the filing said.

The firm said it had advance discussions with nearly half a dozen landowners to acquire and develop prime land parcels in Delhi-NCR.

Meanwhile, MaxVIL posted a consolidated net profit of Rs 12.06 crore during the July-September quarter of this fiscal year as against a net loss of Rs 11.48 crore in the year-ago period.

Total income increased to Rs 380.99 crore in the second quarter of the current fiscal from Rs 293.68 crore in the year-ago period, according to a regulatory filing.
Moneycontrol News
first published: Nov 15, 2021 09:22 am

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