EPL Limited Invests ₹114.81 Million Into Thailand Subsidiary EPTL: A Good Long-Term Sign?
By Shishta Dutta | Updated at: Jun 6, 2025 10:44 AM IST
Mumbai, June 4, 2025: EPL Limited (NSE: EPL, BSE: 500135), a leading player in the packaging industry, has announced that it is investing an additional 43 million Thai Baht (approximately ₹114.81 million) in its wholly owned subsidiary, EPL Packaging (Thailand) Co. Ltd. (EPTL), as part of its international expansion strategy.
The deal includes subscribing to 5,74,200 equity shares of EPTL by EPL and 5,800 equity shares by its wholly owned subsidiary, Lamitube Technologies Ltd. (LTL). Once the deal is fully executed, EPL will hold 99% of EPTL, while LTL will hold the remaining 1%, ensuring the Thai unit remains fully within the group structure.
This transaction is classified as a related party transaction under SEBI LODR Regulations due to EPTL being a wholly owned subsidiary. However, the company confirmed that it is conducted at arm’s length and does not require audit committee approval, as per Regulation 23(5) of the SEBI LODR.
Why The Additional Investment?
The primary reason for EPL investing the additional amount is to expand its business in the Southeast Asian market, where it believes demand is high and can lead to improved revenue and profits. EPL incorporated its subsidiary, EPTL, on February 4, 2025, in Thailand, to pursue opportunities in the manufacturing and trading of laminated tubes, in line with EPL’s core business verticals. Though the company has not yet commenced commercial operations, this investment lays the foundation for market development in the ASEAN region.
With the new investment, EPTL will have increased capital to commence its operations and ensure it can capitalise on the region’s opportunities in the laminated tubes sector, thereby driving the overall sales and revenue of the parent company, EPL.
Transaction Details
| Particular | Details |
|---|---|
| Investment Amount | 43 million THB (~₹114.81 million) |
| Target Entity | EPL Packaging (Thailand) Co. Ltd. |
| Registered Capital | 5,80,000 shares @ THB 100 each |
| Shareholding | 99% EPL, 1% Lamitube Technologies Ltd. |
| Form of Consideration | Cash |
| Completion Timeline | On or before July 15, 2025 |
Management Commentary
In the official stock exchange filing, EPL stated:
“The investment aligns with our commitment to unlock regional growth opportunities and deepen our footprint in the Southeast Asian market through EPTL.”
What’s Ahead For EPL?
EPL Limited, formerly Essel Propack, is India’s largest speciality packaging company and a global leader in laminated tubes. With the additional investment in its subsidiary, the company has ensured that it will have strong operations when it commences its business in Thailand. It will pave the way for future production and client servicing closer to regional FMCG giants.
How Will It Affect The Investors?
Investors may view this move as a signal of the company’s broader Asia-Pacific ambitions, backed by a strong financial and operational framework. Since the company is compliant with all the regulatory and legal guidelines in place in both India and Thailand, investors may take this as a positive sign of the company’s strong cash flow and future growth.
REF:https://nsearchives.nseindia.com/corporate/Sonia_Gupte_04062025233304_SEintimationInvstmtThailandSd.pdf
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