Kanpur Plastipack Limited (KPL), a leading manufacturer and exporter of Flexible Intermediate Bulk Containers (FIBC), polypropylene multifilament yarn, UV masterbatches, fabrics, and CPP films, has announced a strategic joint venture (JV) agreement with Essegomma S.p.A., Italy, aimed at producing high-performance polypropylene yarns for domestic and international markets. The agreement was signed on 18th November 2025, formalising a 50-50 partnership between the two companies.

Essegomma, with decades of expertise in the manufacture of multifilament yarns since 1983, brings its European technical knowledge, advanced Taslan yarn technology, and strong brand reputation to the JV. Kanpur Plastipack contributes its state-of-the-art manufacturing facilities, production expertise, and strong Indian market presence, creating a platform to manufacture and distribute premium-quality technical yarns.

The JV will focus on sales, marketing, trading, and distribution of high-performance polypropylene yarns, catering to high-end textile applications and global technical yarn markets. This partnership allows KPL to diversify its product portfolio, expand technological capabilities, and explore new international opportunities, while maintaining its operational independence.

The JV governance structure ensures equal control for both parties. The board will comprise four directors, two nominated by each party, with pre-emptive rights giving both partners first right of subscription for new shares and transfer restrictions ensuring no share transfer without offering to the other party. These measures ensure strategic alignment and balanced decision-making in the JV while safeguarding each party’s interests.

The joint venture will operate as an independent entity, meaning that there will be no change in management or control of Kanpur Plastipack Limited. Furthermore, there are no conflicts of interest arising from this agreement, and the transaction is not considered a related party transaction under SEBI regulations.

This collaboration allows Kanpur Plastipack to leverage Essegomma’s European market knowledge, advanced technology, and innovation in Taslan yarn, enabling KPL to strengthen its position in premium technical yarns and luxury textile applications. The JV aims to serve both domestic clients in India and international buyers looking for high-quality yarn solutions.

The partnership also positions Kanpur Plastipack to explore global markets more effectively by combining its manufacturing capacity with Essegomma’s brand recognition and technical expertise. This will enhance the company’s competitiveness in the high-performance yarn segment, an area that demands advanced technology, consistent quality, and reliable supply chains.

From a regulatory and compliance perspective, the joint venture agreement has been disclosed under SEBI Listing Regulations (Regulation 30) and SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November 2024, ensuring full transparency to shareholders and market participants. The disclosure includes all material terms, governance provisions, pre-emptive rights, board composition, and operational details.

The execution of this JV is expected to accelerate Kanpur Plastipack’s growth trajectory and enable it to penetrate high-value textile segments, which demand premium quality yarns with technical specifications. With increasing demand for sustainable, durable, and high-performance yarns in domestic and international markets, this collaboration is timely and strategic.

Additionally, the JV will support technological upgradation, knowledge transfer, and innovation in product development. This enables Kanpur Plastipack to maintain product leadership, operational efficiency, and long-term market relevance in a competitive textile industry.

In conclusion, the Kanpur Plastipack and Essegomma joint venture marks a significant milestone in the company’s expansion strategy. The collaboration combines technical expertise, manufacturing excellence, and global market reach to produce high-quality polypropylene yarns. This initiative strengthens Kanplas’ position in the premium technical yarn sector, ensures strategic growth, and opens new avenues for domestic and international market penetration while maintaining transparency and regulatory compliance.

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