The company said the new business will focus on high performance barrier films and laminates for use in packaging food, beverages, oil, personal care and pharmaceutical products.
The new operation will be part of its ‘PVC Pipes undertaking’. The company said additional manufacturing equipment are being set up at its existing plant at Kashipur, Uttarakhand to produce the new line-up of products.
The expansion project is being funded entirely through internal accruals and production is likely to commence in May’18, it added.
Prakash Industries, which is involved in a variety of businesses such as iron and steel and power production, also said that it has decided to demerge its PVC pipes and fittings business for better focus.
“To unlock the potential value and future scope of the business, the company is underway to demerge the business into a separate company,” it said.
“The demerger will give a new impetus to growth, creating a pure play plastics focused entity,” it added.
The new flexible packaging division is also likely to be part of the spun off entity.