Indian film firm completes acquisition of ExxonMobil Chemical’s global BOPP business

JPFL signed a framework agreement for the acquisition in October 2012, with the deal signed on May 3, 2013. The transaction is expected to close by the end of July.

The deal covers five BOPP production locations in the US and Europe, including Georgia and Oklahoma in the US, and in Italy, The Netherlands and Belgium in Europe. The transaction also includes a technology center and sales office in Rochester, New York, and an office in Luxembourg.

JPFL already operates the world’s single largest site for production of BOPP and BOPET films at Nasik, India. Its current combined capacity of BOPET and BOPP is 337,000tpa, and its annual sales turnover as of March 2012 was US$452 million.

JPFL is a part of the diversified BC Jindal group, with interests in flexible packaging, photographic products, thermal power generation and steel products. The flexible packaging producer has a network of agents and distributors around the world, from Australia to Venezuela.

The acquisition will make JPFL one of the leading manufacturers of flexible packaging films globally, with a combined capacity of approximately 445,000tpa for BOPP films.

At the time of the framework agreement being signed, Hemant Sharma, chief executive officer of JPFL, said: ‘We are excited to buy this business due to its excellent portfolio of premium products along with industry leading technology and R&D. We are equally excited to be acquiring an experienced and capable workforce. We are confident that, in combination with our existing Indian operations, we will be able to deliver effective long-term solutions to our customers globally.’