Flexituff International Ltd will spin off its flexible intermediate bulk container (FIBC) business into a wholly owned subsidiary.
Founded in 1993, public-listed Flexituff offers products such as form stable baffle bags, form fitted liner bags, glued liner bags, biaxially oriented polypropylene (BOPP) bags, geo- textile fabrics and polymer compounds, among others. FIBCs are used in industrial bulk packaging in pharmaceutical, fertilizer and food industries.
The repositioning of the FIBC business as a separate entity will help unlock value and raise growth capital, the company said in a statement.
The restructuring is expected to be completed within four months.
In 2016/17, the FIBC business contributed around 44% to the company’s revenues which stood at Rs 1,335 crore. Madhya Pradesh-based Flexituff counts World Bank’s private investment arm International Finance Corporation and private equity firms TPG Capital and Clearwater Capital Partners as investors.
In April 2013,TPG Capital invested Rs135 crore ($25 million then) in Flexituff. The private equity major had previously invested Rs27 crore ($5 million then) in the bulk container manufacturer.
In 2007, Clearwater invested Rs46 crore in Flexituff, picking a 26.07% stake. The PE firm part-exited during the company’s initial public offering in 2011.
ABOUT FLEXITUFF INTERNATIONAL LTD
Flexituff is a multi-product, multi-market, multi-location enterprise. Having evolved from a leading global FIBC major to a foremost Indian geosynthetics solution provider, Flexituff — through its niche products — now serves the domain needs of the retail, agro and infrastructure sectors. With four manufacturing plants across India, a wholly-owned distribution company in United Kingdom and a dedicated warehousing supply and a technical services network in all continents, exports to over 60 countries, employing over 7000 global citizens, Flexituff is truly an Indian multi-national company that has come of age.