Essel Propack has sold its wholly owned subsidiary Packaging India Pvt Ltd (PIPL), valued at Rs 165 crore, to Amcor Flexibles India Pvt Ltd.
"The agreement has been signed and the deal is completed for full cash consideration," Essel Propack Ltd said without disclosing the actual cash realisation.
"The enterprise value of the divested business is Rs 165 crore," the Essel group company said.
The divestment is part of company's strategy to exit non -core adhesive lamination packaging business and pursue growth opportunity in its core tube packaging business which has great potential across the globe in beauty & cosmetics, pharma & health and food categories, it added.
Essel Propcak Vice Chairman & Managing Director Ashok Goel said: "The divestment of Packaging India Pvt Ltd is in line with our strategic decision to intensify focus on the core tube packaging business globally including India."
This decision will help the company to further strengthen expertise in tube packaging business & deleverage, he added.
The deal will provide PIPL an opportunity for further growth in the flexible packaging space as part of Australia- based multinational packaging company Amcor, Essel Propcak said.
The company's stock closed at Rs 141.10, up 5.38 per cent, on the BSE.