MaxVIL declares divestment of packaging film biz to focus on real estate

Max Ventures & Industries Limited (MaxVIL), a subsidiary of Max Group, has reportedly announced selling off the entire stake in the packaging film business to its joint venture Japan-based partner Toppan Printing.

With this divestment, the company aims to focus on the real estate business which it operates through subsidiary Max Estates.

Max VIL stated that the Board agreed to the emancipation of the 51 per cent share of the Max Speciality Films Ltd to Toppan Inc in two different proportions at a value of Rs. 1350 crores, translating to an equity value of about Rs.600-650 crores.

Additionally, the deal with Toppan will also cater to the MSFL debt on Max films.

As per credible sources, Max Speciality Films is ranked as one of the dominant manufacturers of Biaxially Oriented Polypropylene (BOPP) films and speciality labels, coating, packaging and thermal lamination films. For the uninitiated, the firm boasts of the total capacity of 72-kilo tons per annum.

Sahil Vachani, MD and CEO of MaxVIL stated that the company’s decision to sell its portion of shares to Toppan is to generate additional investment for the real estate business in commercial and residential space in Delhi-NCR, which will offer exemplary growth opportunities.

Reportedly, the Board has also instructed the Investment and Finance Committee to inspect new models for revamping the completely owned subsidiary Max Estates Ltd and additionally, rename it as Max Estates Ltd.

It has been speculated that the subsidiary of Max Estates is reportedly in talks with numerous property owners to acquire and develop exceptional projects in Delhi-NCR.

As per recent reports, MaxVIL has reported a net profit worth Rs.12.06 crores in the months of July-September during this fiscal year against loss of Rs.11.48 crore in the previous year, increasing the current income to Rs.293.68 crore.

Source:- https://www.moneycontrol.com/news/business/maxvil-exits-packaging-film-business-to-focus-on-real-estate-7718711.html