JK Paper Ltd. has announced a corporate move involving a Composite Scheme of Arrangement aimed at consolidating its business operations. The Scheme, which involves the merger of three wholly owned subsidiaries—Horizon Packs Private Ltd, Securipax Packaging Private Ltd, and JKPL Utility Packaging Solutions Private Ltd—with JK Paper Ltd, will create a more streamlined paper and packaging company. Additionally, The Sirpur Paper Mills Ltd will become a direct subsidiary of JK Paper Ltd following the merger.
The transaction is subject to approval from the Stock Exchanges, SEBI, the National Company Law Tribunal (NCLT), and other relevant statutory authorities. Once all approvals are secured, the consolidation is expected to be completed within the next 12 months.
Separately, JK Paper Ltd. has also approved the acquisition of a majority stake in Radhesham Wellpack Private Limited (RWPL). The company has entered into a Share Purchase and Shareholders’ Agreement (SPSHA) with RWPL for the acquisition of a 60% stake upfront, with plans to acquire the remaining 40% within the next two years. RWPL specializes in the manufacture of corrugated boxes and packaging products, a growing segment in the Indian paper and packaging industry.
Harsh Pati Singhania, Chairman and Managing Director of JK Paper Ltd, expressed confidence that the consolidation and acquisition would streamline operations and improve efficiencies. He highlighted that the move would also help JK Paper expand its footprint in the packaging business, particularly in the western region of India.
