Varun Industries up on talk of acquiring Kishco Group's manufacturing unit

Mumbai-based Varun Industries, which is present in in steelware, oil & gas and mining sectors, is in talks to acquire the kitchenware plant of Kishco Group. The 55-year old group that runs a kitchenware business is close to selling its Nasik manufacturing facility to Varun Industries, as it wants to focus more on marketing the product than manufacturing.

A senior official at Kishco said that nothing has been finalised. People with knowledge of the proposed deal say that Varun will run the manufacturing unit and will continue to supply the products to the seller and export the rest of the production. The stock price closed at 248, up over 1% on Wednesday.

Analysts say that the acquisition will increase Varun's capacity and will provide it access to high margin export market. Kailash Agarwal, managing director, Varun Industries declined to comment.