Himachal Fibres Ltd to acquire 51% stake in Shiva Cottex

Himachal Fibres Limited, a BSE listed Company (HIMFIBP | 514010 | INE723D01021), has today decided and approved to acquire 51% stake in Shiva Cottex Private Limited by subscribing to its equity share capital. This strategic move solidifies our commitment to enter into manufacturing of innovative and sustainable products from waste plastic material.

Shiva Cottex Private Limited will become subsidiary of Himachal Fibres Limited, and is currently in the process of establishing a state-of-the-art production line for rPET bottle to bottle chips, with an annual capacity of 7,000 tonnes.

Additionally, Shiva Cottex Private Limited is setting up a cutting-edge manufacturing facility for acoustic panels made from rPET, with an annual production capacity of 7,50,000 square meters.

Both facilities are expected to commence commercial production in the Financial Year 2024-2025.

Commenting on the above acquisition of Shiva Cottex Private Limited, Mr. Akhil Malhotra, Chairman of Himachal Fibres Limited said - "We are thrilled to announce the successful integration of Shiva Cottex Private Limited into the Himachal Fibres Limited family. As we navigate this strategic milestone, it is noteworthy that there is growing consumption of PET bottles in India and globally. At present, there is an annual consumption of 1.1 million tonnes (approx.) of PET bottles in India, and with Extended Producers' Responsibility ('EPR') Regulations requiring minimum usage of 30% from recycled PET from FY 25 onwards, the demand for rPET bottle chips is going to spurt substantially specially from the brands like Coca Cola, Pepsi, Hindustan Unilever, etc. Further, the production capacity for rPET bottle to bottle chips is very less in India as compared to future demand post implementation of EPR regulations.

Furthermore, the innovative acoustic panels made from 100% rPET address the increasing need for noise reduction solutions in theatres, offices, and various other spaces without comprising on the design element.

We believe that this venture into rPET bottle to bottle chips and acoustic panels will not only be financially rewarding but will also contribute significantly to our commitment to sustainability."

Shares of HIMACHAL FIBRES LTD. was last trading in BSE at Rs. 34.19 as compared to the previous close of Rs. 33.52. The total number of shares traded during the day was 87557 in over 34 trades.

The stock hit an intraday high of Rs. 34.19 and intraday low of 34.19. The net turnover during the day was Rs. 2993573.00.

Source : Equity Bulls

Keywords

HIMACHALFIBRES INE723D01021 Acquisition ShivaCottex