NewsCorporate ActionsSubam Papers' Subsidiary Enters Logistics Sector with Rs 10 Crore Investment PlanSubam Papers' Subsidiary Enters Logistics Sector with Rs 10 Crore Investment Plan
Subam Paper and Boards Private Limited, a wholly owned subsidiary of Subam Papers Limited, is expanding into the logistics and transportation sector with a new division called VIB Logistics. The company plans to invest up to Rs 10 crores in this venture, which will focus on goods movement, storage services, and delivery operations. This strategic move aims to reduce in-house transportation costs and create new revenue streams by serving external clients. Shareholders approved the necessary amendments to the Memorandum of Association on August 13, 2025.
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Subam Papers Limited's wholly owned subsidiary, Subam Paper and Boards Private Limited, is set to diversify its operations by venturing into the logistics and transportation business. The company announced the launch of a new vertical called VIB Logistics, following shareholder approval for amendments to the Memorandum of Association on August 13, 2025.
New Business Venture
The new logistics division will focus on three primary areas:
- Movement of goods
- Storage services
- Delivery operations
VIB Logistics aims to serve both in-house operations and external clients, potentially opening up new revenue streams for the company.
Strategic Objectives
The company's decision to enter the logistics sector is driven by two main objectives:
Cost Reduction: By handling its own logistics and transportation needs, Subam Paper and Boards Private Limited aims to reduce transportation costs for its in-house operations.
Revenue Diversification: The new division will also cater to external clients, potentially creating an additional source of income for the company.
Investment and Approval
Subam Papers Limited has outlined its commitment to this new venture with a significant financial backing:
- Investment Plan: The company plans to invest up to Rs 10.00 crores in the new logistics business line.
- Shareholder Approval: The expansion into logistics received shareholder approval during an Extraordinary General Meeting (EGM) held on August 13, 2025.
Regulatory Compliance
In adherence to regulatory requirements, Subam Papers Limited has informed the BSE Limited about this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Managing Director, T. Balakumar, signed off on the official communication to the stock exchange.
This strategic move by Subam Papers Limited's subsidiary into the logistics sector represents a significant step in the company's growth and diversification strategy. As the new venture unfolds, stakeholders will be keen to observe its impact on the company's overall performance and market position.
Historical Stock Returns for Subam Papers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.25% | -6.39% | -3.42% | +28.16% | -5.84% | -8.12% |
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