Kansai Nerolac acquired a 68 percent stake in paint manufacturer Nepal Shalimar for Rs 7.55 crore. The company also expects to raise its share in Nepal to 15 percent in the current fiscal. “With the acquisition of this leading paint maker in Nepal, we expect to capture nearly 15 percent market share in the current fiscal year,” Kansai Nerolac Managing Director H M Bharuka said.
The Nepal-based firm has a capacity of 11,000 tonne and a turnover of Rs 12.34 crore. Nepal Shalimar enjoys an 8 percent market share, ranking fourth among the country’s top five paint manufacturers. “We have been exporting our products to Nepal, but due to heavy duties there, we could not expand our business there.
To expand our footprint there, we were considering two options—either an acquisition or setting up a manufacturing facility,” he said. “We will utilise the company’s plant to manufacture the Nerolac range of products which are currently exported to Nepal,” Bharuka added.
Kansai Nerolac will also provide a loan of around Rs 6.12 crore to fund the working capital requirements of NSPL, he said.