JK Paper announces business consolidation plan and stake acquisition in Radhesham Wellpack

JK Paper Limited has unveiled an ambitious plan to consolidate its operations and expand its footprint in the fast-growing packaging sector. On December 13, 2024, the company’s Board of Directors approved a Composite Scheme of Arrangement aimed at integrating its wholly owned subsidiaries—Horizon Packs Private Limited, Securipax Packaging Private Limited, and JKPL Utility Packaging Solutions Private Limited—into a single consolidated entity. These subsidiaries, primarily focused on packaging solutions, will merge with JK Paper Limited to form a unified company streamlining processes and boosting operational efficiencies.

The Board also greenlit the acquisition of a majority stake in Radhesham Wellpack Private Limited (RWPL), a Pune-based manufacturer of corrugated packaging products. JK Paper Limited has committed to acquiring an initial 60% stake in RWPL, with plans to fully acquire the remaining 40% within two years. This move aligns with the company’s long-term goal of expanding its reach in the rapidly growing corrugated packaging segment.

Chairman and Managing Director Harsh Pati Singhania expressed confidence in the strategic direction, emphasizing the operational synergies and enhanced customer service the arrangement would bring. He also noted the increasing demand for corrugated packaging, fueled by growth in key end-use industries such as e-commerce and logistics.

This restructuring, subject to approval from regulatory bodies including the Securities and Exchange Board of India (SEBI) and the National Company Law Tribunal (NCLT), is expected to be completed within 12 months. The integration of JK Paper’s subsidiaries will also result in The Sirpur Paper Mills Limited becoming a direct subsidiary, further simplifying the corporate structure.

Radhesham Wellpack’s incorporation into JK Paper’s operations represents a strategic entry into western India’s burgeoning market for corrugated packaging. With a reputation for producing high-quality corrugated boxes, sheets, and related products, RWPL enhances JK Paper’s product portfolio while bolstering its manufacturing capabilities.

As a leader in branded copier paper and a top producer of coated paper and packaging boards, JK Paper Limited continues to drive innovation in the Indian paper and packaging sector. Its focus on sustainability—being both wood and carbon-positive—further solidifies its position as a forward-thinking market leader.