Page 46 - Plastics News December 2017

BUSINESS NEWS

Essar Energy disburses INR Petainer Innopac to invest in

891 crore to erstwhile public Mumbai preform plant
shareholders

etainer Innopac
PPackaging Pvt.
he erstwhile Promoters of Essar Oil Ltd (EOL),
TEssar Energy Holdings Limited (EEHL) and Oil Bidco Ltd. a New Delhi-based
(Mauritius) Limited (OBML), both companies incorporated joint venture between
and managed under the laws of Mauritius, disbursed Innopac Containers
INR 891 crores to erstwhile public shareholders of EOL Pvt. Ltd. and London-
translating into a price of INR 76.41 per share. The based Petainer U.K.
announcement comes after the closure of the INR 86,000
crore deal involving the sale of EOL by EEHL and OBML Ho lding Ltd., is
to Rosneft and a consortium led by Trafigura and UCP. All spending $3 million
on a molding plant
in Mumbai to make
preforms for large bottled water containers. The new
plant will have the capacity to make about 3 million
preforms a year, and will replace product it currently
imports from Europe. "Currently, we are importing
preforms from Petainer Czech Republic plant and
the plan is to start producing locally by putting up
separate preform plant at the Mumbai site by 2018-19,"
shareholders who successfully tendered their EOL shares said Tapan Kumar Deb, vice president of sales during
in the delisting offer cum exit offer made by the erstwhile PackPlus 2017 in New Delhi.
Promoters in December 2015 are the beneficiaries of
this additional payout of INR 76.41 per share calculated The joint venture currently blow molds water cooler
based on the closing price including the interest at 10% bottles in Mumbai, and has a capacity to produce
per annum for the extended period beyond the prescribed 125,000 containers each month, more than double
due-date. This translates to an additional payment of
INR 891 crores in addition to the INR 3,064 crores that the capacity of a typical Indian plant. Deb said
was paid to the erstwhile public shareholders following ,PET is replacing polycarbonate for large water
EOL’s delisting in 2015. EOL was valued at INR 2,000 bottles because of life span issues, lower cost and
crore around the time of its listing in 1995, and as per environmental concerns around bisphenol A. Petainer
the transaction has now been valued at about INR 50,400 Innopac is also seeing increased demand for PET beer
crore, a growth of 2,420%. This value creation has been kegs in India, and is currently importing them from
made possible through continued strategic investments Petainer's Czech Republic plant.
and growth of the business. Mr Dhanpat Nahata, Director
of EEHL said, “Essar Energy has successfully completed the They are easier to handle for breweries, and bars
payment to the erstwhile public shareholders of Essar Oil. and restaurants in India are replacing beer bottles
This exceptional payout is unparalleled in the history of with draft beer. "The trend is catching-up and there
capital markets and aligns with our thinking of rewarding is evolving market opportunity," he said. "We are also
shareholders who had invested and believed in us. We
feel proud to be a part of this transaction that has created considering installation of line for making kegs here
so many worthy precedents.” considering growing demand."

Plastics News December 2017 46