JK Paints and Coatings Ltd, a wholly owned subsidiary of JK Cement, has acquired 60 per cent stake in Acro Paints for a cash consideration of ₹153 crore.
JK Cement on Friday said its subsidiary has acquired Acro Paints Ltd, a paint maker and construction chemical company.
JK Paints and Coatings Ltd, a wholly owned subsidiary of JK Cement, has acquired 60 per cent stake in Acro Paints for a cash consideration of ₹153 crore.
"JK Paints & Coatings Limited ('JKPCL'), a wholly owned subsidiary of the Company, has invested an amount of Rs.153 Crores (Rupees One Hundred Fifty Three Crore only) in the initial/first tranche and has acquired 60% equity in shares of Acro Paints Ltd," JK Cement said in its regulatory filing.
APL has become a subsidiary of JKPCL and a step down subsidiary of the company with immediate effect.
Through this acquisition, it will give the company commercial presence in the paint business segment.
Acro Paints Ltd reported a net revenue of ₹72.05 crore for the financial year ended March 31, 2022. The company is involved in paint manufacturer and construction chemical manufacturer with a wide range of decorative paint and water proofing products.
In 2019, JSW Group announced its entry into the paints business. Aditya Birla Group firm Grasim Industries is also entering the sector with an investment of around ₹10,000 crore.
JK Cement reported that its standalone net profit declined by 26.07 per cent to Rs 124.8 crore. This is as against ₹168.8 crore in the year-ago period, the company said in a regulatory filing.
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