BK Birla flagship Kesoram Industries has signed a memorandum of understanding (MoU) with Futamura Group of Japan to explore a possible joint venture for the transparent paper business in India.

The discussion about the quantum of investment and equity partnership is underway. This would include an equity investment by the Japanese company in Cygnet Industries, the wholly-owned subsidiary of Kesoram Industries. The potential acquisition of up to a 24 percent stake aligns to the plan for expanding the biodegradable transparent paper business.

The move will enable the local entity to procure balancing equipment to broaden product portfolio and set improved quality standards, as transparent paper is widely utilized in food-grade packaging material among others.

Futamura Group is the world’s largest producer of renewable cellulose film.