Mumbai-based polymer products manufacturer Time Technoplast Ltd divested its 50 per cent holding in a JV with a Chinese partner in South China. The deal value is around $1.3 million.
The company had set up a 50:50 JV - Fanshun Elan Plastech Co Ltd - with Chinese partner Shanghai Fanshun Packaging Co Ltd to set up a facility to manufacture of (IBCs) at Guangzhou in 2011.
"Since this JV had fallen short of expectations in growth and profitability, the company has decided to sell its 50 per cent equity to Mauser," it said.
Based in Germany, Mauser develops, manufactures and markets industrial packaging solutions and has production and reconditioning locations in EMEA, North America, South America and the Asia Pacific.
Meanwhile, Time Technoplast has also acquired 50 per cent equity stake in a joint venture named Nile Egypt Plastech Industries S.A.E in Egypt for $9,00,000, it said in a stock market disclosure.
The Indian firm had set up a 50:50 JV with local partner in Egypt for manufacture of drums, jerrycans and pails at Suez in Egypt.
"The local partner desires to focus on its other business. Pursuant to the company's preference for 100 per cent ownership to drive growth, we offered to purchase balance 50 per cent equity held by the local partner at $9,00,000 as against the investment of $6,00,000 which has since been agreed upon by both sides," it said in the disclosure.
The move will help the packaging company to grow in Egypt and also prepare for its entry into large packaging market in West Africa when investment is favourable, it added.
Post transaction, Nile Egypt Plastech Industries will operate as subsidiary of Time Technoplast. In 2014, the JV achieved a turnover of around $6 million with EDITDA at $0.52 million.
Last month, Time Technoplast sold its Poland-based subsidiary Novo Tech SP Z O.O. to an unnamed Polish private equity fund at an enterprise value of €11 million ($12 million). The company said it will be using the money for expanding its business in Asia and augmenting working capital.
Time Technoplast is into manufacturing and sale of technology based polymer products. It offers industrial and consumer packaging solutions, lifestyle products, automotive components, healthcare products and construction and infrastructure related products.
Shares of Time Technoplast were trading at Rs 50.35 a piece on BSE, down 1.85 per cent in a flat Mumbai market on Thursday at 2.20 PM.