As part of its goal to diversify into consumer home decoration beyond paints, Asian Paints announced investments in two smaller companies, one specialising in fenestration and the other in lighting.
White Teak, a seller of lights and fans, will receive an investment of 180 crore for a 49 percent ownership. The remaining 51 percent of the company will be acquired in two tranches over the next four years.
According to a regulatory filing, the company will invest Rs 19 crore in Weatherseal Fenestration for a 51 percent share, with a further 23.9 percent stake to be acquired over the next three years in a staggered manner.
“We want to make a movement from
‘share of surface’ to ‘share of space’ within the home. Whether it is the
kitchen, whether it is bath or fabrics and furnishing, we have been making
forays in these categories in a very strong way,” Amit Syngle, managing
director of Asian Paints, said during an investor presentation on Friday evening.
“The current initiatives with White
Teak is in the whole decorative lighting space and the other is Weatherseal,
which is in the uPVC doors and windows space, I think are very strong
forays,” he said.
The company will acquire an additional 11% stake
in White Teak in FY24 for a maximum of ₹66 crore, based on the achievement of
certain financial milestones, as per a press statement. Courtesy: www.economictimes.indiatimes.com
