JK Cement on Friday said that its subsidiary has acquired paint manufacturer and construction chemicals company Acro Paints Limited.
JK Cement’s wholly owned subsidiary JK Paints & Coatings Limited has acquired 60 per cent stake in Acro Paints for a cash consideration of ₹153 crore.
“JK Paints & Coatings Limited (‘JKPCL’), wholly owned subsidiary of the Company, has initially/at first tranche invested an amount of INR 153 Crores (Rupees One Hundred and Fifty Three Crore Only) and completed the acquisition of 60% equity shares of Acro Paints Ltd,” said JK Cement in its regulatory filing.
“APL has become a subsidiary of JKPCL and a step down subsidiary of the Company with immediate effect,” it further added.
Through this acquisition, it would give commercial presence to the company in the paint business segment.
Acro Paints Ltd reported net revenue of ₹72.05 crore for the financial year ended 31 March, 2022. The company is involved in paint manufacturer and construction chemicals manufacturer with wide range of decorative paints and water proofing products.
In 2019, JSW Group announced its entry into the paints business. Aditya Birla Group firm Grasim Industries is also entering the space by investing around ₹10,000 crore
JK Cement reported that its standalone net profit declined by 26.07 per cent to ₹124.8 crore. This is against ₹168.8 crore in the year-ago period, the company said in a regulatory filing.
