Asian Paints said on Tuesday it has acquired Reno Chemicals Pharmaceuticals and Cosmetics Pvt. Ltd for Rs 159.52 crore ($24.7 million) in cash.
India’s largest paint maker said in a stock-exchange disclosure that it bought 4,950 equity shares of Reno at Rs 3,22,258 apiece.
Asian Paints said it purchased Reno to use its land and building to meet its own growing infrastructure requirements. Reno’s land is located in Santacruz East area of Mumbai, near Asian Paints’ own office.
Incorporated in 1972, Reno’s annual income was Rs 31.26 lakh in the year through March 2017.
Asian Paints was set up in 1942. It operates in 16 countries and runs 25 paint manufacturing factories. In 2016-17, the company’s consolidated income was Rs 17,347.3 crore and net profit was Rs 2016.2 crore.
The company has made several inorganic moves in the recent past. On Monday, Asian Paints Ltd acquired the 49% stake it didn’t already own in unit Sleek International Pvt. Ltd, a maker of modular kitchens and wardrobes, for Rs 50 crore ($7.8 million) in cash.
Earlier this year, Asian Paints purchased Sri Lanka’s Causeway Paints Lanka (Pvt) Ltd to expand its overseas business.
In 2014, it had acquired the front-end sales business of Punjab-based bathroom fittings and accessories manufacturer Ess Ess Bathroom Products Pvt Ltd.
The same year, the company bought a major stake in Ethiopia-based paint and adhesives maker Kadisco Chemical Industry Plc.