JK Paper set to acquire significant ownership in Borkar Packaging, broadening its reach in the folding carton sector
JK Paper, a unit of the Singhania family-led JK Group, has successfully acquired a controlling stake in folding carton manufacturer Borkar Packaging Pvt Ltd. The deal, valued at approximately Rs 235 crore ($27 million), was finalized in 2022 [1][5].
Borkar Packaging caters to the packaging requirements of over 500 companies, including Unilever, Colgate, Nestle, Dabur, Alkem Laboratories, Indoco Remedies, among others [1]. With this acquisition, JK Paper aims to expand its presence in the packaging industry, bolstering its position in the broader paper packaging landscape.
The acquisition involved purchasing a 72% stake in Borkar Packaging. Of this, 65.7% came from existing shareholders, with the remaining 6.3% acquired via subscription to fresh equity shares [1]. The per-share price was approximately Rs. 125.46 [1].
JK Paper's board approved the acquisition, which was announced as a strategic expansion for the company [1][2]. The deal comes at a positive financial outlook for JK Paper, as evidenced by its Q1 FY26 results, which showed a profit after tax (PAT) jump and the approval of a Rs. 500 crore non-convertible debenture (NCD) issue to raise funds [1][2].
The acquisition process was competitive, with Japanese firm Oji Holdings, Investcorp-backed Indian firm Canpac Trends, and ITC Ltd also reportedly interested [1]. However, specific details about their bids or offers relative to JK Paper’s winning bid are not detailed in the available data [1].
Borkar Packaging operates factories in eight locations across Goa, Pune, Daman, Himachal Pradesh, Kolkata, and Puducherry [1]. The company reported a revenue of Rs 393.2 crore in FY24, a 3% decrease from Rs 404.61 crore in FY23 [1].
This is JK Paper's fifth acquisition in the corrugated packaging category, with Borkar Packaging Pvt Ltd being the latest [1]. Previous acquisitions by JK Paper include Horizon Pack, Securipax Packaging, Manipal Utility, and Radheshysham Wellpack [1].
The company expects to acquire the remaining 28% stake in Borkar Packaging over the next four years, subject to certain conditions [1]. Singhi Advisors acted as the sole financial advisor for the transaction involving Borkar Packaging Pvt Ltd [1].
[1] - Business Standard [2] - The Economic Times [3] - BSE Ltd (stock exchange filings) [5] - Press Trust of India (board resolution and public announcements)
- The acquisition of Borkar Packaging by JK Paper signifies a strategic expansion in the packaging industry, as they aim to bolster their presence and strengthen their position in the broader paper packaging landscape.
- The successful purchase of a 72% stake in Borkar Packaging, primarily financed by existing shareholders and new equity shares, not only allows for an increased involvement in the industry but also reflects a positive financial outlook for JK Paper.
