Ad-for-equity media investor Bennett Coleman & Co Ltd (BCCL) has acquired 4 per cent stake in Spacewood Furnishers Pvt. Ltd through its arm Brand Capital (previously Private Treaties). The deal value was not disclosed.
“The decision to dilute the equity in exchange of advertisement credit is to increase the visibility and brand awareness of Spacewood. Company is looking at 25 per cent growth rate for next 3-5 years,” said Kirit Joshi, director of Spacewood Funishers.
Founded in 1994, Spacewood Office Solutions provides furnishing solutions including prelam MDF board, furniture, register stand, open counter, ledge top, cash wraps, display cases, bottle display, wall system, wood tiered tables, book shelves, pelmets, cornice, kitchen solutions etc. It also specialises in modular kitchens.
It has its own showrooms in major cities and a dealer network to sell its products in other locations. Spacewood which was aiming at more than Rs 205 crore sales for FY13 is also undergoing massive expansion in retailing of modular kitchens and home furniture.
BCCL usually invests through ad-for-equity deals where it picks stake in lieu of value of ads to be published/broadcasted through its various media platforms. BCCL runs publications including The Times of India and The Economic Times besides the Times Now news channel.
This is the fourth investment by the firm in this year. In January, it had invested in two companies- C Mahendra Exports Ltd (jewellery firm) and Provestment Services Ltd (consulting firm). Last month it had invested in Dalmia Continental Pvt Ltd (olive and canola oil firm).
In another deal related to kitchen components including modular kitchens, Asian Paints picked a majority stake in one of the more prominent players in the business, Sleek Group.
(Edited by Prem Udayabhanu)