Indian paper and packaging board manufacturer JK Paper reports eighth consecutive decline in profit, with a nearly 42% drop to Rs812.3m in net profit for the quarter ending 30 June. The company also acquires a 72% stake in Borkar Packaging for Rs2.35bn amid challenges of high wood costs and competition from imports.

JK Paper’s net revenue from operations declines by 2.3% to Rs16.74bn, while raw material costs surge by 9.2%. The company cites lower volume and sales realization due to cheap imports and high wood costs impacting performance. India initiates antidumping investigations into paperboard imports from countries like Indonesia, Chile, and China.

The acquisition of Borkar Packaging aims to strengthen JK Paper’s position in the packaging sector. The move positions JK Paper to become one of the top three players in the folding cartons segment of the packaging industry. Borkar Packaging serves major consumer conglomerates like Unilever and Nestlé, with factories in eight locations across India.

Read more at Yahoo Finance: JK Paper to acquire Borkar Packaging amid profit decline