Page 38 - Plastics News December 2021

BUSINESS NEwS

Consortium Led By RIL Seeking To Acquire Parksons Acquires

Sintex Manohar Packaging

olding carton manufacturer
FParksons Packaging has purchased
Manohar Packaging, a company that
produces paper board packaging for
alcoholic beverages and confectionery.
Manohar Packaging operates through
two ‘advanced’ manufacturing facilities,
which have the capacity to convert
more than 100 million sheets a year.The
financial terms of the transaction have
not been disclosed, but it is thought to
be worth between Rs2bn ($26.6m) and
Rs2.5bn ($33.3m).Parksons Packaging
IL has formed a partnership with produce up to 68,000 tonnes of cotton managing director Siddharth Kejriwal
RAssets Care and Reconstruction yarn and 170,000 tonnes of polyester said: “Parksons has consistently been at
Enterprises Ltd to bid for Sintex as part annually. Sintex was founded in the 1930s the forefront of delivering high service
of the bankruptcy resolution process. A as Bharat Vijay Mills, a composite textile quality and innovation to our customers.
consortium led by Reliance Industries mill in Kalol, Gujarat. Forty years later, “Adding Manohar’s depth of services
Ltd (RIL) is among companies seeking it was rebranded as Sintex Industries, and domain expertise strengthens our
to acquire Sintex Industries Ltd, the a cotton yarn and fabric maker. The offerings in the food and beverage
bankrupt textile maker. The other bankrupt company’s customers included segment and increases our footprint in
potential bidders are Easygo Textiles Pvt. top luxury names such as Hugo Boss North and West India.”Parksons has a
Ltd of Welspun Group, GHCL Ltd, and AG, Diesel and Burberry, which have diversified product portfolio and serves
Himatsingka Ventures Pvt. Ltd, along now also forged alliances with RIL’s more than 300 customers across the
with Shrikant Himatsingka and Dinesh retail arm. Sintex, according to an consumer, food, pharmaceutical and
Kumar Himatsingka. “The resolution analyst, could fit well with RIL’s plastics
plans received shall be evaluated by and textiles business.“Sintex became
the interim resolution professional a household name, thanks to its water
and then shall be placed before the tanks. But after it aggressively expanded
committee of creditors for its further its spinning business (which it forayed
consideration," Sintex said in the filing. into in the 1990s) from around 25,000
This is the second bankrupt textile spindles to a million spindles at its Kalol
maker that RIL is trying to acquire. In factory, trouble started brewing," said
2019, RIL and partner JM Financial the analyst. In 2017, Sintex demerged
Asset Reconstruction Co. Ltd acquired its plastic business into Sintex Plastics
insolvent textiles player Alok Industries Technology to focus on its yarn business. other end-markets. The company has
Ltd. The RIL-JM Financial ARC combine But by then, the textile industry saw many six manufacturing facilities located in
bid Rs 5,000 crore for Alok Industries, companies add spinning capacity, which the Indian cities of Daman, Chakan,
which owed over Rs 30,000 crore to 27 impacted sales. The covid-19 pandemic Pantnagar, Guwahati and Sricity.
banks led by State Bank of India, Axis dealt another blow to its business. In By acquiring Manohar Packaging,
Bank, Corporation Bank and UCO April 2021, the Ahmedabad bench Parksons will have a presence in
Bank, among others. Alok Industries of National Company Law Tribunal Goa and Punjab and a total of eight
has a factory each in Silvassa, Vapi, (NCLT) admitted an insolvency process factories. The acquisition will also
Navi Mumbai and Bhiwandi, which can plea filed by Invesco Asset Management. increase the company’s total converting
capacity to almost 150,000t a year.

38 PLASTICS NEWS DECEMBER 2021