Treofanbuys Max India's speciality films division
Max India to sell its Max Speciality Films division to Germany’s Treofan to focus on the services business.
New Delhi, September 10, 2012: The Analjit Singh-led Max India has decided to sell its 25-year old speciality firms business to Germany’s Treofan for Rs 540 crore (US$ 97.5 million). The Indian company said that the decision to sell this division comes after its strategy to focus on services business.
"The offer from Treofan is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, formal approval from Treofan's Advisory Board and receipt of regulatory and corporate approvals," Max India said in a statement.
It may be noted here that Max Speciality Films (MSF) is a strategic business unit of Max India with a BOPP capacity of close to 50,000 tonne per annum. The unit reported revenue of Rs 703 crore (US$ 126.9 million), a 77 per cent growth over the previous fiscal while the operating profit moved up by 50 per cent to Rs 77 crore (US$ 13.9 million).
Analjit Singh, chairman Max India Limited said, "It was an emotional decision for me personally, but the board and management rightly decided that it made good business sense to focus on our portfolio of service oriented businesses of life."