Max India announced yesterday that it has sold its bi-axially oriented polypropylene (BOPP) film business to German firm Treofan for 5.4bn rupees (US$97M) following months of speculation.
Reports surfaced in April that the firm was negotiating with a number of foreign companies to offload its film unit but the firm refused to comment at the time.
The Board of Max India approved the divestment of Max Speciality Films to Treofan, which develops and sells BOPP films in over 90 countries and has production facilities in Europe and the Americas.
Treofan supplies OPP (oriented polypropylene) films to the confectionery, snack and biscuit markets.
The offer from Treofan is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, and receipt of regulatory and corporate approvals.
Diversified product portfolio
Jürgen Lindemann, commercial director of Treofan, said: “Max Specialty Films with its diversified product portfolio and technical platform will be complementary to Treofan’s strategy to market high-end BOPP film solutions.
“After operating plants in Europe and Mexico, the footprint in India will enable Treofan to transfer its unique portfolio and technology into the strongly growing Asian markets and become a global partner for its customers.”
Treofan said that Max Speciality Films is one of the leading Indian players in the development and manufacture of specialty BOPP films, including multilayer white opaque films, ultra high barrier metalized plain films and leather finishing foils.
Its products are used by players in food packaging, overwrapping, consumer products, labels and textile industries.
Max India said it would focus on its main businesses of healthcare services, clinical research and life and health insurance.
FoodProductionDaily.com approached Max India in April regarding speculation of a BOPP unit sell-off but a company spokesman said: “We have no comment to make on this speculation.”
The Delhi-based company specialises in insurance, health and clinical research and had owned the BOPP business for a quarter of a century.
The BOPP segment was its last remaining manufacturing unit, consisting of one facility in Ropar, in the state of Punjab. The plant has three production lines and Max India boosted output capacity from 29,000 tonnes per annum (t/a) to 52,000 t/a in 2011.