Kansai Nerolac Paints in process to finalise 68% stake takeover in Nepal Shalimar

MUMBAI: Owing to Nepal's progressive economy, Kansai Nerolac Paints is in the process of finalizing its 68% stake in one of the leading paint manufacturers in Nepal, Nepal Shalimar. Kansai Nerolac will make an investment of Rs 7.55 crores towards this proposed acquisition. Further, the company would be giving a loan of NPR 10.20 crores (around Rs 6.12 crores) to fund the working capital requirement of NSPL.

Considered in the top 5 bracket of Nepal, Nepal Shalimar currently commands a market share of 8% in its country. It had a turnover of NPR 20.57 crores (Rs 12.34 crores) in 2010-11. Identifying the synergy between the companies, HM Bharuka, MD, Kansai Nerolac said "With KNPL's entry in the Himalayan state, our consolidated profit would improve and in turn increase EPS which will benefit our shareholders."

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