Asian Paints to accumulate stake in White Teak, Weatherseal Fenestration

Asian Paints Ltd on Friday mentioned it’ll purchase stake in two corporations — White Teak and Weatherseal Fenestration — in a transfer to strengthen its presence within the fast-growing residence enchancment and dcor section.

Asian paints will purchase 100 per cent of Obgenix Software program, popularly recognized by the model title of White Teak, in a staggered method over the subsequent three years.

It has entered into “definitive agreements to accumulate 49 per cent stake in Obgenix Software program from the promoters, for a consideration of roughly Rs 180 crore, together with an earn-out as much as a most of Rs 114 crore, payable after a yr, topic to achievement of mutually agreed monetary milestones”.

Asian Paints will purchase the remaining 51 per cent stake in White Teak in a phased method, “whereby 11 per cent stake could be acquired in FY 2023-24, for a consideration based mostly on achievement of sure monetary milestones, with most consideration of Rs 66 crore”.

The remaining 40 per cent stake could be acquired by Asian Paints in FY 2025-26, for a consideration based mostly on the achievement of sure monetary milestones, with most consideration of Rs 360 crore, an organization assertion mentioned.

Arrange in 2016, by Silicon Valley tech entrepreneurs Pawan Mehta and Gagan Mehta, White Teak is engaged within the enterprise of ornamental lighting merchandise and followers. In FY 2020-21 White Teak’s turnover was at Rs 37.66 crore.

Asian Paints mentioned it’ll purchase a majority 51 per cent stake in Weatherseal Fenestration, an organization engaged within the enterprise of inside ornament/furnishing, together with manufacturing uPVC Home windows and door techniques, for a consideration of Rs 19 crore.

The main paint maker has entered into definitive agreements with the promoters of Weatherseal Fenestration – Harish Munireddy and Pratibha SB- for an infusion of Rs 19 crores for a 51 per cent stake by subscription to the fairness share capital of the corporate.

“It’s also agreed to accumulate a further 23.9 per cent stake in Weatherseal Fenestration from its promoters, in a staggered method, over the subsequent 3 years,” it mentioned.

Munireddy would proceed to be the CEO and Pratibha SB as COO at Weatherseal Fenestration, main additional credence to this affiliation with Asian Paints, the assertion mentioned, including that post-acquisition, Weatherseal Fenestration will probably be a subsidiary of the corporate.

“Weatherseal is likely one of the main manufacturers in uPVC Home windows and Doorways house and has established a good presence within the retail and mission buyer section, primarily in South India. As a part of our endeavour to be an integral a part of the house dcor enterprise, we discover this house engaging within the retail and B2B market section. This affiliation will allow us to widen our choices within the residence dcor house,” Asian Paints MD & CEO Amit Syngle mentioned.

The scale of the present market is greater than Rs 11,000 crore and the market share of organised gamers is about 40 per cent.

“Due to this fact, the potential to innovate and enter this market is immense,” mentioned Asian Paints.

Asian Paints is a number one home paint firm and ranked among the many high ten ornamental coatings corporations on the planet with a consolidated turnover of Rs 21,712.79 crore.

The Mumbai-based firm has operations in 15 international locations internationally by way of its subsidiaries. It has 26 paint manufacturing amenities, servicing shoppers in over 60 international locations.

(Solely the headline and movie of this report could have been reworked by the Enterprise Commonplace employees; the remainder of the content material is auto-generated from a syndicated feed.)