In a recent move, Asian Paints recently purchased 51% of the Sleek Group. This is in pursuit of its exploration of the home improvement market opportunities through the one of the top firms in the modern kitchen space market.
According to Rajesh Ahuja, Managing Director of Sleek International, "To take our brand to the next level in a fairly nascent and unorganized market, we needed a strategic partner to develop our back end and dealer network. We found such a partner in Asian Paints, the Indian multinational with a 30,000 dealer network."
There was no disclosure as to the financial terms of the purchase only that the acquisition would be funded through internal accruals earned by the firm. Analysts project a Rs200 to 250 crore revenue for Sleek thus making the acquisition relatively small compared to the capitalization of Asian Paints of Rs10,000 crore. Asian Paints also has current assets worth over Rs3,000 crore.
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