ESS DEE Aluminium Limited, a leading manufacturer and supplier of Aluminium foil & PVC based primary packaging today announced that it has acquired a majority stake in India Foils Ltd. (IFL) a Vedanta Group Company thereby making it a subsidiary. As part of the Rehabilitation scheme approved by the honourable BIFR vide its order dated 18.08.2008 for the revival of India Foils Ltd., , Ess Dee Aluminium Ltd. and MALCO have joined hands to revive India Foils.
India Foils Ltd. is engaged in the businesses of manufacturing, processing and selling of Aluminium Foil and foil based products. The company has three manufacturing facilities located in West Bengal with total foil rolling capacity of 19000 tones backed by adequate front end conversion capacity that allows it the flexibility to offer value added products. The company was declared sick in the year 2006 and two plants out of three were shut down.
As part of the rehabilitation plan, Ess Dee Aluminium Ltd. and MALCO have infused about Rs. 261 Crores in the company in the form of Equity and Preference shares to repay all existing lenders of IFL making it debt free. The shutdown foil stock and rolling plant located at Hoera will also be restarted using the funds infused. The net worth of the company has become positive upon fund infusion . The revival of plants will be commenced shortly.
Speaking on the transaction Mr Sudip Dutta, Chairman & Managing Director, Ess Dee Aluminium Limited said “IFL enhances Ess Dee’s rolling capacity from the existing 18000 tonnes to 37000 tonnes spread across 5 manufacturing facilities and thus making it India’s largest pharmaceutical foil manufacturing company. At the same time it also places Ess Dee on track to achieving self sufficiency in raw material requirements once the foil stock plant located at Hoera is restarted. Addition of IFLs manufacturing facilities in West Bengal would add strength to Ess Dee’s successful hub and spoke model of manufacturing and printing foil based products with plants spread across the country.”
India Foils Limited has the unique distinction of having innovated and developed every foil specification used in packaging in India.
Ess Dee was advised by M/s ENAM Securities Pvt Ltd, M/s M.P.Chitale & Co M/s. DFK Consulting Services India Pvt. Ltd. and M/s Kanga & Co. for the transaction.
About ESS DEE Aluminium Limited (EDAL)
EDAL is one of India’s leading players in providing primary packaging solutions to the pharmaceutical industry. The company’s products include aluminium foil for strip packs, lid foil, thermoforming PVC and PVC/PVdC films for blister packs. EDAL has three manufacturing facilities – two in Daman and one in Goa. Daman houses the most recent state-of-the-art EDAL plant that caters to the specialized Aluminium foil based laminate requirements of the pharmaceutical industry (alu alu, tropical, child resistant laminates) and those of the food & FMCG industries (confectionery, chocolate, frozen desserts, contraceptives, beverages, etc). The company’s 100% subsidiary, Flex Art Foil Pvt. Ltd, has facilities in Daman, Goa, Vasai (Maharashtra) & Baddi (Himachal Pradesh). EDAL has made major investments in enhancing its R&D capabilities and is presently working on optimum packaging. The Company had recently received approval for rehabilitation & revival of India Foils Ltd under an arrangement with Madras Aluminium Company Limited (part of Vedanta Group).