Ester Industries promoters hike stake by 4.91 pc to 64.04 pc

The promoters of Ester Industries have increased their holding in the company to 64.04 per cent.

The promoters of Ester Industries have increased their holding in the company to 64.04 percent. Fenton Investments, Wilemina Finance Corp, and Movi Limited -- all promoter and promoter group entities -- acquired 4.9 lakh (0.59 percent) 14.4 lakh (1.73 percent), and 21.6 lakh (2.59 percent) shares respectively on August 11 and September 1 via an off-market transaction.

"Post this transaction, the promoters stake in the company has increased by 4.91 percent to 64.04 percent from 59.13 percent," Ester Industries said in a statement on Monday adding the move is a reflection their confidence in the potential and prospects of the business. "The company is well-positioned to embark on its next growth phase on the back of improving business fundamentals of film and specialty polymer businesses."

Expanding consumption is translating to much-improved business metrics for polyester films. Ester Industries is also focused on de-commoditizing its film business by nearly doubling the share of specialty, value-added products to 30 percent over the next two years from 16 percent at present. Besides, the company also proposes to scale up its capacities with the setting up of a new facility through a wholly-owned subsidiary in Telangana. The first phase of the project with a capital outlay of Rs 500 crore is scheduled to be completed by the third quarter of the calendar year 2022.

Ester Industries is one of India's leading producers of polyester films, engineering plastics, and specialty polymers. It has manufacturing facilities at Khatima in Uttarakhand with a capacity of 67,000 tonnes per annum of polyester resin, 57,000 TPA of polyester film, 30,000 TPA of specialty polymers and 16,500 TPA of engineering plastics. The company exports about 30 percent of its production of polyester films with sales and distribution network in more than 56 countries.