Asian Paints secures majority stake in Harind Chemicals and Pharmaceuticals through staged acquisition over five years, with initial purchase of 51% equity. Acquisition aligns with Asian Paints' growth strategy and innovation focus.

Mumbai, Maharashtra: Asian Paints Limited has taken a strategic step towards enhancing its portfolio with the acquisition of a majority stake in Harind Chemicals and Pharmaceuticals Private Limited. This acquisition, facilitated through Share Purchase Agreements (SPA), will occur in stages over the next five years, contingent upon meeting specific preconditions.

In the initial phase, Asian Paints acquired 51% of Harind's equity share capital from Aapex for Rs. 14.28 crores, surpassing the previously agreed consideration of Rs. 12.75 crores. This adjustment in the acquisition cost aligns with the terms outlined in the SPA and other definitive agreements between Asian Paints, Aapex, and the existing shareholders of Harind.

Consequently, both Harind and its wholly owned subsidiary, Nova Surface-Care Centre Private Limited, now operate as subsidiary companies under Asian Paints' umbrella. The subsequent phases of acquisition involve acquiring 19% and 20% stakes from existing shareholders in a staggered manner. The valuation for these tranches will be determined based on agreed considerations, contingent upon achieving predefined financial targets and fulfilling specific preconditions, as outlined in the SPA and other definitive documents.

Founded by Dr. Swapan Ghosh, Harind specializes in nanotechnology-driven speciality chemicals, particularly in surface coating and care. Its core business encompasses research, manufacturing, and sales of additives and specialized coatings leveraging nanotechnology. With its focus on nanotechnology, Harind aims to pioneer high-performance coatings and additives with significant commercial potential.

The acquisition marks Asian Paints' strategic move to leverage Harind's expertise in nanotechnology and enhance its capabilities in the coatings industry. By incorporating Harind and its subsidiary into its portfolio, Asian Paints aims to strengthen its market position and tap into emerging opportunities in the rapidly evolving coatings sector.

This acquisition underscores Asian Paints' commitment to innovation and strategic expansion, positioning the company for sustained growth and competitiveness in the global market.

According to TechSci Research, Asian Paints' acquisition of a majority stake in Harind Chemicals and Pharmaceuticals is poised to significantly impact the market dynamics, particularly within the coatings industry. With Harind's specialization in nanotechnology-driven speciality chemicals, Asian Paints gains a competitive edge by integrating cutting-edge innovations into its product offerings. Nanotechnology holds immense potential for enhancing the performance and durability of coatings, making them more resilient and efficient.

This strategic move allows Asian Paints to expand its market reach and diversify its product portfolio, catering to a broader spectrum of customer needs. By incorporating Harind and its subsidiary into its business ecosystem, Asian Paints strengthens its position as a leader in the coatings sector, both domestically and globally.

Furthermore, the staged acquisition approach over five years demonstrates Asian Paints' commitment to prudent financial management and strategic growth. This gradual integration allows for a seamless transition while mitigating potential risks associated with rapid expansion.

The acquisition also underscores Asian Paints' dedication to innovation and research-driven development. By tapping into Harind's expertise in nanotechnology, Asian Paints gains access to advanced materials and formulations that can revolutionize the coatings industry. This positions the company at the forefront of technological advancements, setting new benchmarks for product excellence and performance.

In addition to bolstering its competitive advantage, the acquisition enables Asian Paints to capitalize on emerging market trends and consumer preferences. With a diversified portfolio of high-performance coatings and additives, Asian Paints can better address evolving market demands and stay ahead of the curve in an increasingly competitive landscape.