- December 22, 2022
- Posted by: admin
- Category: News & Atricles
According to a corporate news release, JK Cement has purchased a majority stake in Acro Paints for Rs. 153 crore through a fully owned subsidiary.
Through JK Paints and Coatings, the company for growing its paints business, the acquisition was carried out.
Leading producer of architectural and high-performance paints and coatings in northern India is Acro Paints. According to the press release, this acquisition is a step toward accelerating JK Cement’s entry into the coatings sector, increasing its product options, and maybe forging ahead into new markets.
“We are thrilled about this acquisition because we think it will foster relationships that will be essential to our expansion. The promoters of Acro, Mr. Charanjeet Gaind and Mr. Ashok Gaind, have agreed to maintain their relationship with us for the upcoming year, which will provide us the chance to benefit from their wealth of knowledge, said Raghavpat Singhania, managing director of JK Cement.
According to a press release from the company, Charanjeet Gaind and Ashok Gaind will continue to serve on the board of Acro Paints Ltd. and will contribute to a shared vision of the two businesses.
The major producer of wall putty in India is JK Cement, and this market has a sizable overlap with the paint sector.
JK Cement has 150,000 influencers, 15,000 distributors, and 100,000 dealers in its pan-Indian distribution network.
Chief Executive Officer Madhavkrishna Singhania of JK Cement described the acquisition as a phase in a larger plan that will involve the cement manufacturer’s growth into new markets.
“Over the next several years, we will steadily increase our footprint in our strong areas thanks to a planned launch strategy we’ve developed. We’ve also identified distinct geographic, product, and channel niches where we will dominate. As we increase our footprint in the paint sector, we will take advantage of the advantages of both of our brands. According to Madhavkrishna Singhania, “We think Acro is complementary with our portfolio and will help us thoroughly handle the fastest-growing paint and putty industry.”
Acro Paints has two manufacturing facilities with a combined capacity of 6,700 kiloliters for building chemicals and 60,000 kiloliters for decorative and textured paints. These facilities are located in Bhiwadi, Alwar District, in the Delhi-NCR region. By Q2 of FY24, the continuing capacity expansion should be finished.