Essel Propack, a specialized packaging company, today announced the divestment of its wholly owned subsidiary, Packaging India (PIPL) to Amcor Flexibles India  with immediate effect.

The agreement has been signed and the deal is completed for full cash consideration.  The divestment is part of company’s strategy to exit non-core adhesive lamination packaging business and pursue growth opportunity in its core tube packaging business which has great potential across the globe in Beauty & Cosmetics, Pharma & Health and Food categories.

The enterprise value of the divested business is Rs 1.65 billion. 

The deal will provide PIPL and its talent an opportunity to further grows and prosper in the flexible packaging space as part of Amcor, an Australia listed global packaging company engaged in flexible and rigid packaging.

Ashok Goel, Vice Chairman & Managing Director, Essel Propack said, ''The divestment of Packaging India is in line with our strategic decision to intensify focus on the core tube packaging business Globally including India. We are noticing a significant growth in the demand of laminated tubes across categories. This decision will help us to further strengthen our expertise in tube packaging business & deleverage.''

Shares of the company gained Rs 7.2, or 5.38%, to settle at Rs 141.10. The total volume of shares traded was 127,128 at the BSE (Monday).