Emmbi Polyarns acquires 25% stake in Global Bag

Emmbi Polyarns Limited, a Gujarat based company engaged in the manufacture and sale of FIBC (jumbo bags) and woven sacks as well as various woven polymer based products like container liners, protective irrigation system, canal liners, flexi tanks and car covers today announced that it has acquired 25 per cent stake in international marketing company called Global Bag, a Czech Republican company. The deal size was however not known.

Global Bag is engaged in marketing of agricultural storage equipments and packaging from an Austrian company, Silagro Gmbh. Silagro Gmbh, which is a well known company in the same field, was holding a 50 per cent stake in Global Bag prior to this transaction.

"The two companies have entered into an exclusive marketing arrangement for marketing Emmbi’s products in the non English speaking East European countries such as Czech Republic, Slovakia and Poand," the company said in a statement.

This acquisition will also help Emmbi explore newer geographies in terms of distribution, marketing and expansion activities. It will also help explore the horizons for export activities to further capture similar packaging opportunities in the agricultural field.

"Not only would this acquisition boost our exports but also create more opportunities in packaging for agriculture products. The performance of this acquisition will guide us on our global ambitions," said Makrand Appalwar, MD, Emmbi Polyarns Limited in a press statement.

The scrip of Emmbi Polyarns meanwhile hit an upper circuit of 20 per cent during the day closing at Rs 19.50 on Tuesday. The stock had debuted on stock market in 24 February 2010. It hit an all-time high of Rs 48.35 on 24 February 2010 and an all-time low of Rs 14.25 on 25 May 2010.