Jindal Poly Films’ wholly owned subsidiary - Jindal PolyPack has entered into an agreement to acquire 100% shareholding of SMI Coated Products which is engaged in the manufacturing of pressure sensitive label stocks.

SMI boasts of a capacity to convert 1,350 tonnes of paper monthly with seven coaters. The company produces 100-million sqm of labelstock per annum, exporting to 22 countries with a slitting and distribution company established in Jebel Ali, Dubai, UAE. As per a financial report, "SMI has a recorded turnover of Rs 273 crores in FY 2020-21. The equity value payment by Jindal PolyPack to SMI would be Rs 99.65 crores after adjustment of net debt and debt like items."

Rohit Mehta, the corporate director of SMI Coated Products shared a message on social media which said, "It was a tough and difficult decision to make. However, life must go on. Change is inevitable and we embrace this change with the full knowledge and understanding that your support to SMI will only grow in times to come." Mehta added, As the new torchbearers take over, we are confident that we have handed over the baton to a company which will take SMI, its team and the industry to greater heights."

Company sources said, "The acquisition is expected to augment the existing growth plans of the company, resulting in forward integration by expanding into downstream product segments i.e. labels and related products. Jindal PolyPack will source its raw material from Jindal PolyFilms."

Jindal PolyFilms is a part of the diversified BC Jindal group. The group has interests in flexible packaging, photographic products, thermal power generation and steel products. JPFL has the world’s single largest site for production of BOPP and BOPET films in Nasik.

WhatPackaging? had reported in December 2021 that the net sales for Jindal PolyFilm was at Rs 1,359.18 crore. This is up 27.15% from Rs. 1,068.97 crore in December 2020. Meanwhile quarterly net profit is at Rs. 217.98 crore in December 2021 up 10.53% from Rs. 197.21 crore in December 2020. The EBITDA stood at Rs 334.95 crore in December 2021 down 1.01% from Rs 338.38 crore in December 2020.