Asian Paints Ltd has forayed into the kitchen components business by acquiring 51 per cent in one of the top domestic names in the business, Sleek Group. The value of the deal is undisclosed.
“Sleek is well poised to be a partner for Asian Paints’ foray into modern kitchens. This acquisition will offer significant opportunities and synergy for the company,” said KBS Anand, managing director and CEO, Asian Paints Ltd.
Mumbai-based Sleek Group is into the business of manufacturing, selling and distributing kitchens, kitchen components including wire baskets, cabinets, appliances and accessories, with a pan India presence. It has a retail network of more than 30 showrooms including shop-in-shops and a network of over 250 dealers. According to the company website, Sleek installs 25000 kitchens annually, in India and overseas.
Asian Paint’s board has approved the proposal to acquire 51 per cent stake in Sleek, subject to due diligence, approvals and documentation.
Asian Paints stated that this acquisition has a strategic fit and marks its foray into the home improvement segment, which has few organised pan India players and is growing rapidly.
Set up in 1942, Asian Paints is India’s largest and Asia’s third largest paint company, with a turnover of Rs. 9,632 crore. It operates in 17 countries and has 24 manufacturing facilities.
Last year in March, Reliance Equity Advisors Ltd invested $20 million for 13.7 per cent stake in kitchen appliances maker Butterfly Gandhimathi Appliances Ltd .
In December 2011, French home appliance maker Groupe SEB acquired 55 per cent in Maharaja Whiteline, a privately held electrical appliance maker based in Delhi. Before that, Philips, one of the top players of the organised sector, had acquired Maya Appliances that sells its products under the Preethi brand.
In 2010, Stovekraft Pvt Ltd, a kitchen appliances company with brands like Gilma and Pigeon, had raised funding from Sequoia Capital India and Sidbi Venture Capital.
(Edited by Prem Udayabhanu)