Max Ventures and Industries rose 3.99% to Rs 56 after the company said its subsidiary Max Speciality Films has commercialized its new advanced metallizer line.
Max Speciality Films (MSFL) manufactures specialty packaging films. In December 2020, MSFL had said that it would be installing two additional metallizer lines.
"MSFL has commenced first of the two metallizer lines today (20 April 2021), Max Ventures said in a statement.
These two additional metallizer lines were planned as a part of MSFL's strategy to continue to embark on its specialty journey. Planned with a total capex of Rs 60 crore for two lines (Rs 30 crore for each), these metallizer lines will enable MSFL to enhance its value-added specialty product portfolio.
This is in line with its focus since the last few years to co-create packaging films innovations in consultation with leading FMCG companies. Rs 30 crore for the first metallizer line was funded by MaxVIL and its Japanese partner Toppan in the proportion to their shareholding in MSFL, that is 51:49.
The second metallizer line which is expected to be commercialized in Q3 of FY22 will be funded through internal accruals.
These two additional lines are one of the newest and most technologically advanced with superior production capabilities. After the commercialization of second line, MSFL will have a total of 6 metallizer lines.
Commenting on the commercialization, Sahil Vachani, MD & CEO of Max Ventures, said, "We are very pleased to announce that with the commercialization of our latest metallizer line today, MSFL has entered a next leg of growth in its specialty journey.
With the commercialization of this metallizer line and another on track to be commercialized in Q3 of FY22, MSFL will significantly enhance its capabilities in the specialty product portfolio catering to the high-end premium needs of the customers.
Increasing output of high value and more profitable value-added films will enable MSFL to further efficiently utilize its facilities and in turn improve the profitability and sustainability of the business."
Max Ventures & Industries (MaxVIL), a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100% subsidiary, Max Estates, and a packaging films business through Max Speciality Films, a 51:49 strategic partnership with Toppan, Japan. MaxVIL also has a real estate services & management company - Max Asset Services and an investment subsidiary, Max I., which supports real estate entrepreneurial ventures.
The company's consolidated net profit declined 29.90% to Rs 2.04 crore on a 10.07% rise in net sales to Rs 296.09 crore in Q3 FY21 over Q3 FY20.
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