India-based flexible packaging products firm Uflex has announced that it is selling its 70% stake in AKC Developers to its joint venture partner Hanjer Biotech in consideration for approximately $21m. With this transaction Uflex would completely exit from the solid waste processing business.
Uflex Group president for Finance RK Jain said that the decision to exit from solid waste management is linked to Uflex’s strategy of focusing on their core business area.
Uflex has acquired a majority stake in the AKC Developers in 2007-08 and made considerable investments of approximately $9m till date. AKC Developers is involved in municipal solid waste processing projects under the public-private partnership model.
It has solid waste management operations in Gwalior, Faridabad, Agra, Bareilly and Amritsar. While the project in Gwalior is complete, those in Faridabad and Agra is likely to be completed within the next six months.
Uflex manufactures flexible packaging materials including polyester chips. It had entered solid waste management as an extension of its existing operations related to plastic waste management that is a byproduct of its core business.