Time Technoplast has divested its Poland subsidiary namely Novo Tech SP z o.o which is mainly engaged in manufacture of Anti Spray Flaps and some Entrance Mattings to a Poland based Private Equity Fund. This would also include 100% subsidiary of Novo Tech i.e. GrassTech, Romania with overlapping product range. This marks complete exit of the company from Europe to enable focus on growth markets in Asia and MENA region.
The company has taken this step as a part of reorganization / restructuring of its overseas business to build further on its core competence and maintaining geographical focus on Asia and MENA region.
Novo Tech is not a material subsidiary of the company (with turnover of less than 5%) and, therefore, it will not have any significant impact on top line / bottom line in FY’16. Novo Tech has been valued at EV of approximately 11 million euro as against company’s investment of approximately 2 million euro.
Time Technoplast plans to use these resources for further expanding its business in Asia and augmenting working capital for increased business in the current year. It would also reflect positively on total borrowings and interest cost during the year.
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