Pidilite Industries, the maker of Fevicol adhesive, sealants and construction chemicals, has signed a definitive agreement with Tenax SPA (Tenax Italy) for acquiring 70% stake in the laters India subsidiary Tenax India Stone Products in an all-cash deal for about ₹ 80 crore.
Tenax India makes adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone industry.
Post acquisition, Tenax India will become a subsidiary of Pidilite. The acquisition by Pidilite will enable Tenax India to fully leverage the sales, distribution and marketing capability of Pidilite in India and the SAARC market
Pidilite hopes to expand its presence in the fast-growing adhesives, coatings and surface treatment chemicals market for the marble and stone industry and bring world class technology to India by investing in a manufacturing plant.
Tenax Italy will continue to be a partner — holding the balance 30% stake — in Tenax India and provide full support to Tenax India through its technical and market understanding of marble, granite and stones business in India and SAARC markets.
Pidilite reported a profit after tax (PAT) at Rs 346 crore grew by 58% over the same quarter last year. For the nine months ended, profit after tax at Rs 966 crore grew by 40% (excluding exceptional items grew by 42%).
Net sales at Rs 1,916 crore grew by 4% over the same quarter last year. Net sales for the nine months ended stood at Rs 5,719 crore and grew by 6% over the same period last year.
EBITDA before non-operating income stood at Rs 464 crore a growth of 36% over the same quarter last year. EBITDA for the nine months ended stood at Rs 1,278 crore and grew by 16% over the same period last year.
The company delivered a resilient performance amid challenging market environment. It has decided to remain focused on driving volume growth enabled by investments in brand building, growth categories, capabilities and sales and distribution.
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