VGL executed agreement for acquisition of majority stake in Encase Packaging Private Limited

Vaibhav Global Limited (VGL) today announced the successful execution of Share Subscription and Shareholders' Agreements for acquisition of a majority stake of 60 per cent in Encase Packaging Private Limited.

The purchase consideration of Rs 4 crores have been determined and the same has been financed through internal accruals and cash balances. The acquisition will be completed in approximately 2 months.

Speaking on the occasion, Mr. Vineet Ganeriwala, Group CFO, Vaibhav Global Limited, said, "We welcome Encase Packaging as a part of VGL Group. The acquisition will further consolidate our existing integrated supply chain and give substantial savings in the packaging cost of jewellery products. Besides this will also strengthen our efforts towards developing a sustainable packaging for our products",

Based out of Sri City in Andhra Pradesh, Encase Packaging is engaged in the business of manufacturing and trading all kinds of packaging material.

Currently, VGL is largely dependent on sourcing packaging material from China for its jewellery products. Hence, this acquisition will further strengthen its supply chain network providing requisite flexibility and cost advantage.

VGL is an omnichannel E-tailer of fashion jewellery, accessories, and lifestyle products in developed markets with direct access to 125 million households (FTE) through its TV home shopping networks – Shop LC in the US, Shop TJC in the UK and Shop LC in Germany.