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Press Release
Asian Paints acquires the Powder Coatings business ofHawcoplast
Chemical Ltd and its associates
Mumbai, November 1, 2001 :Asian Paints (India) limited, Indias
largest paint manufacturer,
today announced the acquisition of the powder coatings business
from Hawcoplast Chemical Ltd
and its associates. This is the first acquisition made by Asian
Paints in India.
Asian Paints (India) Ltd, together with its subsidiary Asian
Paints Industrial Coatings Ltd has
entered into agreement to acquire the powder coatings business
for Rs. 160 million and value for
the net current assets to be determined on completion of Due
Dilligence from Hawcoplast
Chemicals Ltd and its associates. The deal between the two
companies was signed today
evening in Mumbai. M/s Enam Financial Consultants Pvt. Ltd. were
the advisors to this deal.
Announcing the acquisition, Mr. Ashwin Dani, Vice Chairman &
Managing Director, Asian Paints
(India) Limited mentions This is the fastest growing segment in
the industrial coatings market
registering growth of around 12 % in the last financial year.
Since our presence in this segment is
marginal, the acquisition will strengthen our presence
significantly. Also since the powder
coatings segment is growing at a healthy pace, it will fuel
growth for the companys industrial
business. He further adds The trend that we have noticed is that
other segments like Can, Coil
& OLP (Other liquid paints) are gradually switching to
powder coatings. It is this trend and
available new opportunities that will ensure a bright future for
Powder coatings.
Hawcoplast Chemical Ltd and its associates are the pioneers in
powder coating manufacturing in
India. It has one plant at Sarigam (Gujarat) manufacturing
powder coatings. Hawcoplast
Chemical Ltd manufactures the complete range of powder coatings
such as pure epoxy,
hybrid(Epoxy polyester), pure polyester, structures, novelties
and other functional coatings. The
site also has some scope for expansion in future. Hawcoplast
Chemical Ltd has a Technology tie-
up with Oxyplast Limited, Belgium, who are among the leading
manufacturers of Powder coatings
in the world.
The total industrial paint market is estimated to be around
58500 kl (excl. auto) and is valued at
Rs. 6600 million for the last financial year 2000-01. The major
segments in the Industrial coatings
are Protective Coatings, Powder Coatings, Marine Paints,
Can/Coil coatings and general
industrial/other liquid paints. Industrial business accounts for
only 3% of Asian Paints total
business and thus represents small portion of the overall sales
of the company. In the industrial
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coatings segment, Asian Paints is present mainly in Protective
coatings with marginal presence in
marine, coil and powder coatings. The powder and protective
coatings segment constitutes
around 56% of the total market for industrial paints(auto not
included). The remaining segments
which are largely technology intensive are also heavily
segmented.
This is Asian Paints third acquisition in the paints business.
The company had earlier made twooverseas acquisitions when it
acquired the second largest paint company in Sri Lanka in
October1999 and thereafter in November 2000 acquired the paints
business of Pacific Paints, Australia.
Asian Paints is Indias largest manufacturer of paints with a
turnover of Rs 14990 million - selling180,000 MT/KL of paint in the
last financial year. It is the leader in this industry for over
three
decades. It ranks among the top 15 decorative coatings companies
in the world. One of thecountrys leading business magazines
Business Today in Feb 2001 ranked Asian Paints as theNinth Best
Employer in India. Asian Paints has been recognised as the Fourth
Most Admired
Company across industries in India through a survey carried out
by The Economic Times in
association with ORG-Marg.
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