Kansai Nerolac Paints to acquire 68% stake in Nepal Shalimar

Kansai Nerolac Paints (KNPL) is in the process of finalizing its 68% stake acquisition in one of the leading paint manufacturers in Nepal, Nepal Shalimar (NSPL). The investment to be made by the company towards this proposed acquisition shall be about NPR 12.58 crore (around Rs 7.55 crore).

Besides, the company would also be giving a loan of NPR 10.20 crore (around Rs 6.12 crore) to fund the working capital requirement of NSPL. Nepal Shalimar currently commands a market share of 8%. It had a turnover of NPR 20.57 crore (Rs 12.34 crore) in 2010-11.

KNPL will be utilizing the manufacturing set up of Nepal Shalimar and will manufacture the Nerolac range of products that are currently exported to Nepal. Further, this investment by the company in NSPL is subject to the approval from the concerned authorities in India and Nepal.

Kansai Nerolac Paints is engaged in the industrial, automotive and powder coating business. The company’s brands include Impressions, Beauty, Excel and Surakhsa.