Max Speciality Films, which is an equity method associate of Toppan since 2017, produces and markets BOPP films mainly for food packaging applications

MSL

MaxVIL has completed divestment of packaging business to Toppan. (Credit: Kevin Phillips from Pixabay)

Max Ventures & Industries (MaxVIL) has completed the sale of its remaining 51% stake in its packaging business to its partner Toppan for INR6.28bn ($83.1m).

In November last year, MaxVIL has agreed to divest its 51% remaining stake in Max Speciality Films (MSFL), an Indian manufacturer provider of biaxially-oriented polypropylene (BOPP) films.

Based in Punjab, MSFL is an equity method associate of Toppan from 2017. Earlier, Toppan already owns a 49% stake in MSFL. At present, MSFL is a consolidated subsidiary of Toppan.

Established in 1990, MSFL produces and markets BOPP films mainly for food packaging applications.

MSFL will enable Toppan to expand its network to supply mono-materials to diverse customers in the global market, in addition to enabling the company to make a full-scale entry into the BOPP film business in India.

In a statement, MaxVIL CEO and MD Sahil Vachani said: “With the closure of this transaction, the company has embarked on a new journey to emerge as the leading Real Estate developer in the NCR region.

“The fund allows the company the headroom to scale its growth aspirations across both the Residential and Commercial spaces. The real estate sector has witnessed stronger recovery and we have a strong residential and commercial real estate development pipeline under different stages of evaluation including due diligence.”

MaxVIL will secure the first tranche payment of INR4.85bn and an additional INR100m expected within 30 days. The second tranche of payment of approximately INR1.33bn is expected to be received by June 2023.

The company will use the proceeds from the sale of the packaging business to develop the real estate business and achieve its targets.