Asian Paints buys Sri Lanka based Causeway Paints

The country’s largest paints company by revenue, Asian Paints Ltd, publicized that it has agreed to acquire Sri Lanka’s Causeway Paints Lanka (Pvt) Ltd to develop its overseas business.
Asian Paints had stated in the stock-filing exchange that the all-cash deal aims at enhancing the company’s operation in the island nation. However, it didn’t disclose the deal value.
The company already operates in Sri Lanka through its secondary offspring Asian Paints (Lanka) Ltd.
Asian Paints is purchasing Causeway through its Singapore-based indirect unit Berger International Pvt Ltd.
The acquirement is subjected to certain conditions and statutory approvals.
Causeway Paints activated operations in 1994. It brands decorative and refinish paints for industrial and automotive clients, besides other products. It made net sales of 5,630 million Sri Lankan rupee (Rs 253.60 crore) for the fiscal year 2015-16, up by 37.5% compared to the year before.
Asian Paints was established in 1942. It now operates in 19 nations and runs 26 factories. The corporation posted net sales of Rs 12,545.8 crore for 2015-16, up from Rs 11,648.8 crore compared to the year before.
A couple of years ago, Asian Paints had invested Rs 120 crore as part of a deal to buy a 51% stake in Sleek International Pvt Ltd, one of the top modular kitchen solutions firms in India.
The business has made several inorganic moves in the past to lift its home décor business. In 2014, it had bought the front-end sales business of Punjab-based bathroom fittings and accessories manufacturer Ess Ess Bathroom Products Pvt Ltd.
The same year, the company purchased a major stake in Ethiopia-based paint and adhesives manufacturer Kadisco Chemical Industry Plc.
This particular Causeway acquisition will enrich the group’s presence in the Sri Lankan market where the company already operates through its subsidiary, Asian Paints (Lanka) Limited.
CPLPL is a key competitor in the Sri Lankan coatings market operating for more than two decades and delivers mainly decorative paints (including wood finishes) and automotive refinish paints.
Though Asian Paints did not reveal the deal size, it said, CPLPL reported revenue of Sri Lankan Rupee 5,630 million (approximately INR253.60 crore) in the previous financial year.