Acro’s high-quality product portfolio and manufacturing capacity with over 3,000 SKUs and channel and strong presence of JK Cement will add significant value.
NEW DELHI, JK Paints & Coatings Limited (a wholly-owned subsidiary of JK Cement Limited) has signed a share purchase agreement with Acro Paints Limited and its shareholders to acquire 60 per cent controlling stake in the company.
Acro Paints is a leading architectural and high-performance paints and coatings company in North India. The acquisition is another step towards JK Cement’s entry into the paint business, expansion of product range and potential entry into new markets.
The acquisition of Acro Paints will provide JK Paints with strong manufacturing capabilities and complete product formulations, which will help meet the company’s business plan objectives for the coming years.
Managing Director of JK Cement Ltd. Raghavpat Singhania said, “We are excited about this acquisition as the synergies it will create will act as a driving force for our growth. We are delighted to have Acro’s promoters Chandrajit Gaind and Ashok Gaind on board for the next one year.
This will allow us to benefit from their rich experience. He will remain on the Board of Acro Paints Limited and continue to contribute towards the joint vision. We are committed to ensuring a smooth and successful merger of our businesses and are thrilled to bring together our combined expertise and experience. The existing capacity is being expanded and is expected to be completed in the second quarter of FY 2023-24.”
JK Cement is a leading manufacturer of wall putty in India and this segment has significant similarities with the paint industry. Acquiring a financially strong company like Acro with zero debt and healthy margins is a strategic move for JK Cement, through which the company will be able to leverage the strength of its putty distribution network.
And will be able to use joint effectiveness. JK Cement’s nationwide network of one lakh dealers, 75,000 influencers and 1500 distributors and Acro’s distribution network will enable the company to reach a wider market, ensuring a present market to customers in the region.
Madhavkrishna Singhania, Deputy MD & CEO, JK Cement Limited said, “We have prepared a focused launch plan to expand our presence in our strong markets over the next few years and have identified specific geographies, products and channels where we will dominate.
We will leverage the strength of both our brands as we expand our presence in the paint industry. We believe Acro will provide synergies with our portfolio and help us meet demand in the rapidly growing paint and putty segment.”
Established in 1989, Acro Paints Limited has a complete portfolio of decorative paints with presence in niche product categories like textured paints, construction chemicals and waterproofing products. He has gained considerable experience in the industry over the last more than 30 years. The company is a strong player in the paint industry,
Which offers a wide range across all categories including economy, premium and luxury. With more than 3000 SKUs at different price points, the company is able to cater to different customer needs.
“We are delighted to associate with JK Cements and its dynamic management team, who are synonymous with humility and passion and are leading the next era of growth,” said Chandrajit Gaind, MD, Acro Paints Limited. Dr. Raghavpat Singhania and Madhav Singhania are India’s most respected business leaders.
Who have a deep commitment to the nation’s growth, people and community. I would like to thank my colleagues who have played a vital role in the growth of our business through their commitment and expertise. I am confident that JK Cement is the ‘perfect home’ for them, for our customers and for our business to grow.
The company located at Bhiwadi in Alav district in Delhi-NCR region has two state-of-the-art manufacturing facilities, post-expansion capacity of 60,000 kg liters in decorative and textured paints and 6700 kg liters in construction chemicals. The ongoing capacity expansion operations are expected to be completed by Q2 FY24.
The acquisition will provide an opportunity to enter the growing vertical construction chemicals and waterproofing products, with a current market size of Rs. 5,000 crores and growing at 10 percent per annum.
The acquisition is subject to regulatory approvals and conditions.
