Vaibhav Global Limited has announced the successful execution of Share Subscription and Shareholders' Agreements for acquisition of majority stake of 60% in Encase Packaging Private Limited. Purchase consideration of Rs. 4 crores have been determined and the same has been financed through internal accruals and cash balances. The acquisition will be completed in approximately 2 months.
Based out of Sri City in Andhra Pradesh, Encase Packaging is engaged in the business of manufacturing and trading of all kinds of packaging material. Currently, VGL is largely dependent on sourcing packaging material from China for its jewellery products. Hence, this acquisition will further strengthen our supply chain network providing requisite flexibility and cost advantage.
Speaking on the occasion, Mr. Vineet Ganeriwala, Group CFO, Vaibhav Global Limited, said, "We welcome Encase Packaging as a part of VGL Group. The acquisition will further consolidate our existing integrated supply chain and give substantial saving in packaging cost of jewellery products. Besides this will also strengthen our efforts towards developing a sustainable packaging for our products."