Berger Paints India Ltd has acquired the Indian architectural products operations of US-based paint major Sherwin-Williams Company for an undisclosed amount, according to a BSE filing.
Sherwin-Williams entered the Indian market by acquiring Nitco Paints Pvt Ltd in 2006. It has architectural and industrial paints business in India with more than Rs 100 crore in revenues.
Architectural or decorative paint business includes paints used for internal and exterior wall painting at buildings, a consumer-facing business where brands are important. Industrial applications and auto paints business cater to B2B segments.
The Indian paints market is dominated by Asian Paints which is almost three times the size of its nearest competitor Berger Paints. Kansai Nerolac and Akzo Nobel (earlier ICI) round up the top four slots in the Indian paints market.
“The transaction will significantly increase our presence in key markets. It builds on our strategy to grow our architectural paint business throughout India and brings a high quality, committed team of employees to Berger Paints India,” said KS Dhingra, chairman of Berger Paints.
Kolkata-headquartered paint manufacturing company Berger Paints is the second largest paint company in the country by revenues. The firm has seven manufacturing units and has presence in four countries.
In 2009, Nalanda India Fund invested an undisclosed amount in the firm and currently holds 5.2 per cent stake in the firm.
Earlier in 2008, Berger Paints acquired Poland-based chemical products manufacturer Bolix SA from Advent International Corp for $38.6 million.
In mid-day trades, Berger Paints scrip was quoting at Rs 207.45 a share, up 0.29 per cent on the BSE in a weak Mumbai market on Tuesday.
(Edited by Sanghamitra Mandal)