Strategic Merger to Streamline Operations and Enhance Ownership

MUMBAI: In a strategic move to rationalise its corporate structure, JK Paper, led by Harsh Pati Singhania, is merging several of its subsidiaries with itself. This consolidation aims to enhance the Singhania family's ownership in India's foremost branded paper and packaging board manufacturer.

The listed company is merging three wholly-owned subsidiaries - JKPL Utility Packaging Solutions, Securipax Packaging, and Horizon Packs - under a single entity, bringing the packaging business together. Additionally, JK Paper is amalgamating Enviro Tech Ventures, where it owns a 96% stake and the Singhania family holds the remaining 4%, leading to a 3.5% increase in the family's stake to 53%.

Prior to the merger, Enviro Tech Ventures will spin off its agriculture, hunting, and related services into a new entity called PSV Agro Products. Post-merger, Enviro's subsidiary, Sirpur Paper Mills, will become a direct subsidiary of JK Paper. The Singhania family, as Enviro shareholders, will receive JK Paper shares, further consolidating their stake.

This consolidation is expected to optimise capital assets, supply chain operations, and customer relationships, creating a stronger foundation for future growth. It will also simplify shareholding structures, reduce regulatory compliance requirements, and cut administrative costs associated with managing separate entities.