Supreme Industries diversifies into auto component business

Leading plastic manufacturer Supreme Industries inks joint venture deal with Kumi Kasei Company Limited.

The joint venture company (JVC) will acquire the auto component manufacturing business of Kumi Kasei Company. Kumi has its manufacturing facility in Khushkhera, Rajasthan. Supreme Industries will hold 20.67 per cent of the share capital of the JVC, Kumi Supreme India Private Limited. The auto component business will be transferred to the JVC through a slump sale for approximately Rs. 108 crore. Supreme Industries executed a definitive agreements with Kumi and the JVC on Wednesday.

Supreme Industries is a major plastic processing company in India with an annual capacity of 3.4 lakh MT. The company engages in processing polymers and resins into finished plastic products. It operates through five business segments including Plastic Piping, Consumer Products, Packaging Products, Industrial Products and Composite LPG Cylinders.

At 10:14 hours, the stock of Supreme Industries was quoting Rs. 1,212.00 per share, up Rs. 22.05 or 1.85 per cent on Thursday, while the benchmark index BSE Sensex was at 33,467.59, up 448.52 points or 1.36 per cent.