Kanpur Plastipack Limited has announced the sale of its CPP (Cast Polypropylene) division’s plant and machinery to SRF Limited for Rs 49.25 crore. The transaction, approved by the company’s board, is aimed at reducing financial strain and focusing on its core business of Flexible Intermediate Bulk Containers (FIBCs), PP fabric, and small PP sacks.
The company, a leading manufacturer and exporter of industrial packaging solutions, had ventured into the CPP film manufacturing business in 2023. However, due to sluggish demand in the FMCG and flexible packaging sectors, along with global economic uncertainties, the division failed to achieve sustainable growth.
According to the regulatory filing, the CPP division contributed Rs 20.13 crore (4.08%) to Kanpur Plastipack’s total turnover in FY24 but recorded a net worth loss of Rs 6.33 crore. Given the continued financial strain, the management decided to exit this segment.
The transaction, finalized on March 11, 2025, is subject to shareholder approval and is expected to be completed by October 30, 2025. The company emphasized that the deal is a strategic move to streamline operations and improve financial health. The proceeds from the sale will be used to repay outstanding term loans, significantly reducing the company’s debt burden.
Kanpur Plastipack also highlighted that the core Raffia division has shown strong profitability in the last quarter and is expected to maintain positive momentum. Additionally, an ongoing preferential issue of warrants worth Rs 20 crore by promoters will enhance liquidity and strengthen the company’s balance sheet.
By divesting its underperforming CPP unit, Kanpur Plastipack aims to refocus on its core strengths while improving profitability and financial stability.
