Asian Paints acquires stake in Weatherseal

Asian Paints, today, entered into definitive agreements with the promoters of Weatherseal Fenestration Private Limited (hereinafter referred to as "Weatherseal Fenestration"), Mr. Harish Munireddy and Ms. Pratibha SB, for, inter alia, infusion of Rs. 19 crores for 51% stake by subscription to equity share capital of Weatherseal Fenestration, subject to customary closing adjustments and conditions precedent. It is also agreed to acquire additional 23.9% stake in Weatherseal Fenestration from its promoters, in a staggered manner, over the next 3 years.

Harish Munireddy is an IT professional with extensive experience of more than 12 years across various roles in blue chip IT companies. He has leveraged his experience towards building a strong tech-enabled platform that has facilitated Weatherseal to provide a seamless customer experience in a scalable way. Started 7 years back, Weatherseal has consistently delivered high quality, efficient uPVC windows and doors backed by robust customer-service to build a reputed brand in South India.

Asian Paints, with its vision of becoming the most inspirational home décor brand, empowering the consumer to create her dream homes, is extremely happy to partner and associate with Weatherseal Fenestration. Asian Paints is moving strategically from 'Share of Surface' to 'Share of Space' within homes and wants to be a part of the customer life cycle of home makeover. Windows and Doors space is vital for fulfilling the home décor aspirations of homeowners and Asian Paints intends to leverage the expertise of Weatherseal Fenestration and its promoters, delivering solutions with unique value propositions to its customers. The size of the current market is more than Rs. 11,000 crs and the market share of organised players is about 40%. Therefore, the potential to innovate and enter this market is immense.

Mr. Harish Munireddy would be the Chief Executive Officer and Ms. Pratibha SB would be the Chief Operating Officer at Weatherseal Fenestration, leading further credence to this association with Asian Paints.

"Weatherseal is one of the leading brands in uPVC Windows and Doors space and have established reputable presence in the retail and project customer segment, primarily in South India. As part of our endeavour to be an integral part of the home décor business, we find this space attractive in the retail and B2B market segment. This association will enable us to widen our offerings in the home décor space. We look forward to working with Weatherseal to take the business further", commented Mr. Amit Syngle, MD & CEO of Asian Paints Ltd.

"I have leveraged my learnings from my IT career towards making Weatherseal a customer-focused, scalable organization. We are delighted to embark on this journey and be a part of the Asian Paints family. This partnership will help us maximise the business potential, leveraging on the wide network presence and customer connect of Asian Paints", quoted Mr. Harish Munireddy, CEO of Weatherseal Fenestration.

EY (Ernst & Young LLP) acted as the financial advisors to Asian Paints for this transaction.

Shares of Asian Paints Limited was last trading in BSE at Rs. 3081.75 as compared to the previous close of Rs. 3080.15. The total number of shares traded during the day was 42462 in over 4341 trades.

The stock hit an intraday high of Rs. 3129.00 and intraday low of 3066.75. The net turnover during the day was Rs. 131994283.00.

Source : Equity Bulls

Keywords

AsianPaints INE021A01026 StakeAcquisition Weatherseal