Kansai Nerolac to acquire 68 per cent stake in Nepal Shalimar [August 2012]

Kansai Nerolac Paints Ltd. (KNPL) is in the process of finalising its 68 per cent stake in one of the leading paint manufacturers in Nepal, Nepal Shalimar Pvt. Ltd. (NSPL).
The  investment  to  be  made  by  Kansai Nerolac  towards  this  proposed  acquisition  shall  be  about Rs. 7.55 crore. Further, the company would be giving a loan of Rs. 6.12 crore to fund the working capital requirement of NSPL.
Considered in the top 5 bracket of Nepal, Nepal Shalimar currently commands a market share of 8 per cent in its country. It had a turnover of Rs. 12.34 crores in 2010 – 11. KNPL would utilise the manufacturing set up of Nepal Shalimar and manufacturing the Nerolac range of products that are currently exported to Nepal.
HM Bharuka, MD, Kansai Nerolac, commented, “With KNPL’s entry in the Himalayan state, our consolidated profit would improve and in turn increase EPS which will benefit our shareholders.”

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