Ecoplast Ltd. Merges with Kunal Plastics After NCLT Approval

The National Company Law Tribunal (NCLT), Ahmedabad Bench, has approved the merger of Kunal Plastics Private Limited with Ecoplast Limited. This decision, dated May 14, 2026, makes the combination effective from April 1, 2025, and binds both companies, their shareholders, and creditors.

Merger Details Approved

The NCLT Ahmedabad has officially approved the merger scheme between Kunal Plastics Private Limited and Ecoplast Limited. This sanction means Ecoplast Limited will fully absorb Kunal Plastics. All assets, rights, liabilities, and duties of Kunal Plastics are now transferred to Ecoplast. Employees of Kunal Plastics will become Ecoplast employees, with their employment terms remaining at least as favorable. Any ongoing legal cases against Kunal Plastics will now continue against Ecoplast.

Strategic Significance of the Merger

This merger aims to consolidate operations, potentially leading to cost efficiencies and a stronger market presence for Ecoplast Limited. It simplifies the corporate structure by bringing the two entities under a single company.

Corporate Strategy and Industry Context

Ecoplast Limited has a history of corporate restructuring. This approach reflects a dynamic strategy for growth and operational evolution within the competitive flexible packaging sector.

Key Changes Following the Merger

• Ecoplast Limited becomes the sole surviving company, absorbing Kunal Plastics.
• Kunal Plastics will cease to exist as a separate legal entity.
• Shareholders and creditors of both companies are now bound by the NCLT's order.
• Kunal Plastics employees will transition to Ecoplast with protected employment terms.
• Ecoplast must complete specific filings and payments to finalize the merger.

Potential Risks and Scrutiny

There is potential for legal action against individuals, directors, and officials if statutory rules are found to be violated. The Income Tax Department also reserves the right to take action if the merger is seen as resulting in tax avoidance or non-compliance with tax laws.

Industry Peers

• Polyplex Corporation Ltd: A major player in PET film and packaging solutions.
• Cosmo First Ltd: Known for BOPP films and specialty films, diversifying into new areas.
• EPL Limited: A global leader in laminated tubes for the FMCG sector.

These companies operate in similar markets and face comparable industry dynamics.

Next Steps for Ecoplast

Ecoplast Limited must file the certified copy of the NCLT order with the Registrar of Companies within 30 days. The order and scheme must be lodged with the Superintendent of Stamps for stamp duty adjudication within 60 days. Ecoplast also needs to assess and pay outstanding dues of Kunal Plastics before the merger's effective date, which must be declared on Ecoplast's next financial balance sheet within one year. Required fees must also be paid to the Regional Director and Official Liquidator.