Kanpur Plastipack Limited — Important, 13-03-2025: General Updates

Kanpur Plastipack Limited has signed an Assets Purchase Agreement with SRF Limited to sell its CPP division's plant and machinery for ₹49.25 Cr. The sale follows ongoing losses in the CPP division, attributed to global uncertainties and overcapacity in the flexible films market, which have affected its financial performance and viability. By exiting the CPP business, the company aims to focus on its core activities in FIBCs and PP fabric, mitigating the financial strain from the CPP division.

The proceeds from the sale will be used to repay outstanding term loans associated with the CPP assets, thereby reducing debt and improving the company's balance sheet. Additionally, a preferential issue of warrants amounting to ₹20 Cr by the promoters will enhance liquidity. The Raffia division has reported healthy profits recently and is expected to continue this trend, positioning the company for a positive outlook moving forward.