Subam Papers expands into the packaging sector with a 51% stake in new LLP

Subam Papers invests ₹51,000 for a 51% stake in new LLP, expanding into packaging with Rajapalayam Success Packagings LLP.

Subam Paper and Boards Private Limited, a wholly owned subsidiary of Subam Papers Limited, has executed a Limited Liability Partnership Agreement (LLPA) dated April 19, 2025. This agreement establishes a new LLP under the name M/s. Rajapalayam Success Packagings LLP, with Subam contributing ₹51,000 as capital investment. This investment grants Subam a 51% profit-sharing stake, cementing its majority control over the new venture.

Business alignment and sector synergies

The newly formed M/s. Rajapalayam Success Packagings LLP will focus on the manufacturing of corrugated boxes, carton boxes, and other paper-based products. Notably, this business aligns directly with Subam Papers' existing operations, ensuring seamless synergy. The investment is strategic, aimed at leveraging Subam's industry experience to expand its presence in packaging solutions while maximising operational efficiency.

No regulatory hurdles and quick execution

Importantly, the transaction is not a related party transaction, and no governmental or regulatory approvals are required. The entire capital contribution process is expected to be completed within a month, allowing Subam Papers to hit the ground running with this venture.

Summing up

Subam Papers' ₹51,000 capital investment for a 51% stake in M/s. Rajapalayam Success Packagings LLP marks a strategic expansion into the packaging segment. With aligned business interests and no regulatory delays, the partnership promises efficiency, synergy, and market growth.