Kanpur Plastipack Limited , a leading manufacturer of Flexible Intermediate Bulk Containers (FIBC) and PP Multifilament Yarn, has announced a strategic partnership and significant investment plans to enhance its market position and product offerings.

Joint Venture with Essegomma

The Board of Directors of Kanpur Plastipack has granted in-principle approval to enter into a 50:50 joint venture with Essegomma S.p.A., an Italian company specializing in the manufacture of multifilament yarns since 1983. The joint venture aims to establish a new company in India for the sales, marketing, trading, and distribution of high-performance polypropylene yarn.

This collaboration is expected to combine Essegomma's European expertise in Taslan yarn technology and brand reputation with Kanpur Plastipack's strong manufacturing base and state-of-the-art infrastructure in India. The joint venture plans to create a platform for producing and supplying premium-quality technical yarns to global markets and high-end textile applications within India.

Investment Plans

Kanpur Plastipack has outlined a comprehensive investment strategy totaling ₹105.26 crore, focusing on capacity enhancement, process efficiency, and infrastructure modernization. The investment is divided into two main categories:

1. FIBC Division and Infrastructure Upgrade: ₹47.22 crore

   • New building for FIBC Division at Unit 3 (Gajner Road)
   • Modern roll storage facility with advanced racking and retrieval system
   • New building for Trading Division warehousing at Gajner Road

2. Diversification into Non-Woven Products: ₹58.04 crore

   • Greenfield manufacturing facility for Non-Woven Fabrics using needle-punching technology

Capacity Expansion

The company plans to increase its FIBC production capacity by 6,000 MT over the next five years, adding to its existing capacity of 18,000 MT per annum. This expansion is expected to improve the product mix and profitability by partially converting existing fabric production into value-added FIBCs.

Financial Performance

Kanpur Plastipack reported the following financial results:

The company's performance shows significant improvement in profitability compared to the same quarter in the previous year.

These strategic moves by Kanpur Plastipack, including the joint venture with Essegomma and substantial investments in capacity expansion and diversification, signal the company's commitment to growth and innovation in the technical textiles sector.

Deputy Managing Director's Payment Terms Modified

One of the key resolutions passed at the AGM was the change in payment terms for Shri Shashank Agarwal, the Deputy Managing Director of Kanpur Plastipack . The shareholders approved this special resolution, indicating a potential adjustment in the compensation structure for this key executive.

Secretarial Auditor Appointment

The shareholders also approved the appointment of M/s Adesh Tandon & Associates as the company's secretarial auditors for a period of five years, from April 1, 2025, to March 31, 2030. This appointment ensures compliance with regulatory requirements and maintains transparency in Kanpur Plastipack's secretarial practices.

Foreign Company Acquisition

In a strategic move, Kanpur Plastipack received shareholder approval for the acquisition of Valex Ventures Ltd, a foreign company. The acquisition will be executed through a combination of equity share swap via preferential allotment and cash consideration. This decision could potentially expand the company's global footprint and enhance its market position.

Other Resolutions

The AGM also saw the passage of several other resolutions, including:

1. Adoption of audited financial statements for the year ended March 31, 2025
2. Declaration of final dividend for the financial year 2024-25
3. Re-appointment of Shri Shashank Agarwal as a director, who was retiring by rotation
4. Ratification of the remuneration of the cost auditor

Voting Results

All resolutions were passed with an overwhelming majority. The voting results showed that each resolution received over 99.99% votes in favor, with only a minuscule percentage of votes cast against.

The strong shareholder support for these resolutions indicates confidence in Kanpur Plastipack's strategic decisions and governance practices. As the company moves forward with these approved measures, including the foreign acquisition, it will be interesting to observe how these decisions impact its growth and market position in the coming years.