JK Cement aims to purchase Acro Paints
- ByStartupStory | December 23, 2022
According to a filing with the stock exchange, JK Paints and Coatings Ltd., a wholly owned subsidiary of JK Cement Ltd., will pay Rs. 153 crore to acquire a 60% share in Acro Paints Ltd.
Over the course of a year, the remaining 40% stake will be purchased. With the acquisition, JK Cement will be able to extend its product line, enter new markets, and enter the paints industry. According to the company, it will bring manufacturing capabilities and product formulas that can be scaled up to fulfil the goals of JK Paints & Coatings’ growth plan over the next years.
Additionally, the acquisition would present a chance to enter the expanding market for construction chemicals and waterproofing goods.
“Both are considered pioneers in the Indian Paint Industry. They will also continue to remain on the board of Acro Paints Ltd. and will contribute towards a shared vision. We are committed to ensuring a smooth and successful integration of our businesses and are excited to bring our combined expertise and experience to the table. The current capacity is undergoing expansion and is expected to be completed in the second quarter of FY24”, Raghavpat Singhania, managing director, JK Cement said.
“We have a focused launch plan to gradually deepen our presence in our strong markets over the next few years, and have identified specific geographic, product, and channel niches where we will dominate. We will leverage the strengths of both our brands as we expand our presence in the Paint Industry. We believe Acro is synergistic with our portfolio and will help us comprehensively address the fastest-growing paint and putty segment”, Madhavkrishna Singhania, deputy MD and CEO, JK Cement Said.
In certain aspects, Grasim Industries Ltd, part of the Aditya Birla group, and J K Cements’ intentions to enter the paints business are comparable. By FY25, the business expects to spend twice as much on capital expenditures—roughly 10,000 crores—than it did in the investment it first disclosed in 2021.
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