Indigo Paints stated in an exchange filing that “on 3 April 2023, the company entered into a share purchase and share subscription agreement (SPSS) and a shareholders agreement (SHA) with Apple Chemie India (ACIPL) to acquire 51% equity shares in ACIPL.” ACIPL is a company that manufactures and sells construction chemicals and water proofing products in India and other countries. It made Rs 31.81 crore in revenue in the fiscal year ended 31 March 2022 and is expected to make more than Rs 41 crore in FY23. ACIPL will become a subsidiary of Indigo Paints as a result of this acquisition, allowing the company to expand its product portfolio in the construction and water proofing sectors.
The company purchased 44,924 equity shares of ACIPL for Rs 6,529 and has the option to acquire an additional stake in Apple Chemie at the end of three years. Indigo Paints will enter the adjacent areas of construction chemicals and waterproofing with this partnership. The target market is estimated to be worth more than Rs 15,000 crore and is expected to grow in the double digits. ACIPL will continue to lead the company and expand its B2B business across India.
“This partnership will enable Indigo Paints to broaden its product offerings,” said Hemant Jalan, CMD of Indigo Paints. Indigo Paints will soon release a full line of waterproofing and construction chemicals aimed at retail customers.” Indigo Paints has a large selection of interior and exterior wall paint colours, enamels, and wood coatings for homes and offices.