Time Technoplast exits Chinese venture, buys 50% stake in Egyptian JV

As a part of its strategy to strengthen its presence in growth markets and further expand business in emerging markets, Time Technoplast Ltd, a plastic products manufacturer, has decided to exit from its south China venture (Fanshun Elan Plastech Co Ltd) and buy 50 percent stake in its Egyptian joint venture (Nile Egypt Plastech Industries).
 
Time Technoplast had entered into 50:50 JV with Shanghai Fanshun Packaging Co Ltd to set up a facility for manufacturing IBCs (intermediate bulk containers) at Guangzhou in 2011. The JV, which commenced operation in 2012-13, recorded turnover of $ 4.73 million in calendar year (CY) 2014. “Since this JV had fallen short of expectations in growth and profitability, company has decided to sell its 50 percent stake to Mauser – a leading global industrial packaging firm,” said Time Technoplast in a BSE filing on June 30, 2015.
 
Meanwhile, in order to pave the way for company to grow in Egypt and prepare for entry into large packaging market in West Africa, Time Technoplast has acquired partner’s 50 percent stake in their 50:50 JV in Egypt. The JV - established to manufacture drums, jerrycans and pails at Suez – achieved turnover of about $ 6 million with EBITDA at $ 0.52 million in CY 2014.
 
“JV is required to grow further to meet the growing demand of its products and also set up manufacturing of IBCs which has large potential. The local partner desires to focus on his other business (paints and wall coverings). Pursuant to Time Technoplast’s preference for 100 percent ownership to drive growth, we offered to purchase balance 50 percent equity from the local partner for $ 900,000,” said Time Technoplast in the BSE filing.
 
These developments come against the backdrop of Time Technoplast’s decision to divest its Polish subsidiary Novo Tech SP to a Poland-based private equity fund in June 2015.
 
Time Technoplast Ltd manufactures plastic products to cater to growing segments such as industrial packaging solutions, lifestyle products, automotive components, healthcare products, infrastructure & construction related products, material handling solutions & composite cylinders.