Swiss Military Consumer Goods Ltd acquires AAA Shenyang Container Seal Pvt Ltd

Pursuant to the resolution passed by the shareholders of Swiss Military Consumer Goods Ltd at their Annual General Meeting held on 04th September, 2021, the company have acquired 100% shareholding of AAA Shenyang Container Seal Private Limited and established a wholly owned subsidiary of the Company for RFID Seal business. AAA Shenyang Container Seal Private Limited shall be treated as Material Subsidiary of the company.

Promoshirt SM Private Limited, a Company which is substantially owned and controlled by our Promoters, Mr. Anuj Sawhney and Mrs. Ashita Sawhney, had entered into a Joint Venture Agreement with M/s Hongkong Shining Fortune Trading Co. Limited, Hongkong, on May 24, 2018, for the sole purpose of establishment of a Joint Venture in the name of AAA Shenyang Container Seal Private Limited, for the purpose of producing eseals, other security seals and parts, communication equipment, electronic information technology development, electronic product sales and import and export of business.

Since the company has acquired 100% shareholding of AAA Shenyang Container Seal Pvt. Ltd. from both Joint Venture partners at the fair value calculated as per RBI guidelines, therefore transection between company and Promoshirt SM Private Limited falls within the ambit of related party transection at arm's length prices.

The Company has acquired 2076111 equity shares (100%) of AAA Shenyang container seal Private Limited and 1 equity share is transferred to Mr. Anuj Sawhney as nominee shareholder to complying with the statutory requirement of minimum number of shareholders in a private company as per Section 2(68) of the Companies Act 2013.

RFID technology e-seal facilitating the port logistics automation and cargo tracking Digitalization / Integration in the supply chain. Companies increasingly using item-level Radio Frequency Identification (RFID) to trace and track the goods for inventory control purpose and also and supply chain management. The use of RFID e-seal in seaport container terminal is growing notably.

Seeing to the market size and future business potential one of the associate company of Promoters started a joint venture with one Chinese Partner (having requisite experience in making of RFID ESeal for Indian Market) to ensure supply for the Indian Market and successfully running a profitable venture for the last 3 years.

In India RFID e-seal used in transport from exporter hub to custom terminal with a preclearing customs procedure by integrated the logistics and Customs aspects as per government directives. Indian Custom implemented use of RFID E-Seal for self-sealing container by exporter and accordingly present market size is approx. 24,00,000 to 36,00,000 unit of RFID E-Seal yearly basis which will increase with the advent of new regulation for the ease of tracking of the container and its movement. Accordingly, Company had decided to acquire the profitable venture of RFID e-seals.

Shares of Swiss Military Consumer Goods Ltd was last trading in BSE at Rs. 28.30 as compared to the previous close of Rs. 27.00. The total number of shares traded during the day was 491669 in over 1148 trades.

The stock hit an intraday high of Rs. 28.35 and intraday low of 27.05. The net turnover during the day was Rs. 13706580.00.

Source : Equity Bulls

Keywords

SwissMilitaryConsumerGoods AAShenyangContainerSeal Acquisition RFIDSeal Logistics