BIC picks up 40% stake in Cello Pens
Pen and stationery manufacturer, Cello Pens, announced that it has sold 40% stake to French company, BIC, for Rs 800 crore ($160 million).
By ET Bureau |
NEW DELHI: Pen and stationery manufacturer, Cello Pens, announced that it has sold 40% stake to French company, BIC, for Rs 800 crore ($160 million). BIC is the world���s second-largest pen and stationery company, with a turnover of Rs 11,000 crore for 2007-08.
According to the agreement, BIC has the option of increasing its holding in the privately held Cello Pens to 55% in 2013. ET was the first to report the transaction in its edition dated January 23.
Cello claims to have revenues of Rs 450 crore, with a 37% share of the domestic market. The company, which has a presence in 35 countries, sells over 4.2 million pens on a daily basis, of which 85% is sold in India.
The deal will enable Cello Pens to expand its existing global distribution network and give BIC a foothold in the Rs 2,000-crore Indian stationery market, which is growing at 20% annually. The alliance will allow the companies to jointly forge a marketing and research strategy for Cello.
According to the agreement, BIC has the option of increasing its holding in the privately held Cello Pens to 55% in 2013. ET was the first to report the transaction in its edition dated January 23.
Cello claims to have revenues of Rs 450 crore, with a 37% share of the domestic market. The company, which has a presence in 35 countries, sells over 4.2 million pens on a daily basis, of which 85% is sold in India.
The deal will enable Cello Pens to expand its existing global distribution network and give BIC a foothold in the Rs 2,000-crore Indian stationery market, which is growing at 20% annually. The alliance will allow the companies to jointly forge a marketing and research strategy for Cello.
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