MUMBAI: Japanese paper and pulp giant Nippon Paper is all set to enter India by acquiring the country’s largest maker of paper beverage cups Plus Paper Foodpac, the company said in a statement. Although the deal size was not disclosed, sources said it could be around Rs 100 crore.
Promoted by BK Modi of the Spice Group, Plus Paper counts Kentucky Fried Chicken and other leading multinational fast-food chains among its customers.
Earlier in December, Nippon Paper had agreed to buy 100% stake in Plus Paper. Purchasing all outstanding shares in the Indian company this month will give the Japanese company its first manufacturing and marketing base in the subcontinent.
Plus Paper operates two factories in India. Nippon Paper intends to use its manufacturing knowledge to boost factory productivity and quality.
EY, Anchor Advisors, Indian Law Partners (ILP) and PDS Legal were the financial and legal advisers in the transaction. Mori Hamada & Matsumoto through its India practice partner Yohei Koyama advised Nippon Paper with respect to Japan-related aspects of the transaction.
This will be a part of Nippon Paper Group’s overseas expansion initiative for the paper container processing business following the recent opening of its plant in Vietnam.