Max India founder and chairman Analjit Singh will raise Rs 540 crore by selling Max Speciality Films (MSF) to Treofan Germany GmbH & Co - a German global technology leader for biaxially oriented polypropylene (BOPP) film. The decision to sell, company management said, is in line with the group's strategy to focus on service oriented businesses of life.
Analjit Singh, chairman, Max India Ltd said MSF was the oldest business in the group's portfolio. "MSF has been a well run business since many years now, a quality leader with a highly competent leadership team and a highly motivated workforce. Its divestment made good business sense to focus on our portfolio of service oriented businesses of life,” Singh said in a media statement.
The company's board in a meeting held on Monday approved the proposal for sale of 100% equity to Treofan. The sale, however, is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, formal approval from Treofan’s Advisory Board and receipt of regulatory and corporate approvals.
Max India generated revenues of around Rs 8,200 crore in FY12 across all its businesses, which in addition to MSF includes Max Life (the largest private life insurer in India); Max Healthcare (focused on providing tertiary specialties in North India with1900 beds ); Max Bupa (dedicated health insurance business with more than 300,000 lives covered); Max Neeman, focused on Clinical Research; and Antara, a recently announced investment in the senior living business.
Rahul Khosla, managing director, Max India said the expertise and access to global customers through the new parent Treofan will elevate MSF business to the growth trajectory they truly deserve. "For Max India, this divestment will allow us to focus on our synergistic service focused businesses of life and the additional funds will provide us several options to invest in our growth," he said.
Established in 1990, MSF is a manufacturer of flexible polymer films for multitudinous applications in food, non food, and industrial packaging, leather coating films. Last year, the company registered revenue of Rs 703 crore, a growth of 77% over its revenue in the previous fiscal. According to company statement, its earnings before interest, taxes, depreciation and amortisation (ebitda) also witnessed an increase of 50% over previous fiscal to reach Rs 77 crore.
MSF was being approached for a buyout by several global players, said Mohit Talwar, deputy managing director, Max India. "However we decided to progress further with Treofan, as we believe they are the natural owners of the business,” he said.
Treofan develops and sells BOPP films in over 90 countries around the world has production facilities in Europe and the Americas. MSF with a BOPP capacity of approximately 50,000 tonnes per annum (TPA), it is one of the leading Indian players in 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 leading players in food packaging, overwrapping, consumer products, labels and textile industries.
Analjit Singh, chairman, Max India Ltd said MSF was the oldest business in the group's portfolio. "MSF has been a well run business since many years now, a quality leader with a highly competent leadership team and a highly motivated workforce. Its divestment made good business sense to focus on our portfolio of service oriented businesses of life,” Singh said in a media statement.
The company's board in a meeting held on Monday approved the proposal for sale of 100% equity to Treofan. The sale, however, is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, formal approval from Treofan’s Advisory Board and receipt of regulatory and corporate approvals.
Max India generated revenues of around Rs 8,200 crore in FY12 across all its businesses, which in addition to MSF includes Max Life (the largest private life insurer in India); Max Healthcare (focused on providing tertiary specialties in North India with1900 beds ); Max Bupa (dedicated health insurance business with more than 300,000 lives covered); Max Neeman, focused on Clinical Research; and Antara, a recently announced investment in the senior living business.
Rahul Khosla, managing director, Max India said the expertise and access to global customers through the new parent Treofan will elevate MSF business to the growth trajectory they truly deserve. "For Max India, this divestment will allow us to focus on our synergistic service focused businesses of life and the additional funds will provide us several options to invest in our growth," he said.
Established in 1990, MSF is a manufacturer of flexible polymer films for multitudinous applications in food, non food, and industrial packaging, leather coating films. Last year, the company registered revenue of Rs 703 crore, a growth of 77% over its revenue in the previous fiscal. According to company statement, its earnings before interest, taxes, depreciation and amortisation (ebitda) also witnessed an increase of 50% over previous fiscal to reach Rs 77 crore.
MSF was being approached for a buyout by several global players, said Mohit Talwar, deputy managing director, Max India. "However we decided to progress further with Treofan, as we believe they are the natural owners of the business,” he said.
Treofan develops and sells BOPP films in over 90 countries around the world has production facilities in Europe and the Americas. MSF with a BOPP capacity of approximately 50,000 tonnes per annum (TPA), it is one of the leading Indian players in 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 leading players in food packaging, overwrapping, consumer products, labels and textile industries.
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