Pune : Indigo Paints Lid (IPL) on Monday said that it has closed a transaction with the promoters of Apple Chemie India Private Limited (“ACIPL”), for acquiring 51% stake in ACIPL, by a combination of primary capital infusion into ACIPL and secondary share purchase transaction with the promoters. Indigo Paints also has an option to acquire additional stake in Apple Chemie at the end of 3 years. ACIPL is a fast growing company (5 year CAGR of ~ 30%) in the construction chemicals and water proofing space, manufacturing and supplying products in the B2B space to various reputed infrastructure projects in the western States of India. Its Sales in FY 22 was Rs 32 crores, and is expected to clock over Rs 41 crores in FY 23.
Vivek Naik, the main promoter of ACIPL, is a former national President of Indian Concrete Institute, and has vast experience of over 30 years in the construction chemicals and waterproofing industry. Mr. Vivek Naik, along with his son, Mr. Rohit Naik has built Apple Chemie into a formidable company with a strong track record of growth & profitability and established a marquee client base. Indigo Paints, India’s fifth largest and fast growing decorative paints brand is extremely happy to partner with Apple Chemie. With this partnership, Indigo Paints will be entering into the adjacent areas of construction chemicals and waterproofing space. The size of the target market is estimated fo be greater than Rs. 15,000 Cr and is expected to grow in double digits. ACIPL will continue to lead the company and expand the business pan India in the B2B segment.
“Apple Chemie has a wide range of products which are complementary to Indigo Paints. They also have a marquee clientele which includes all major engineering and construction conglomerates in the country. With the Government’s massive infrastructure spending plan and the established client base, Apple Chemie is primed to become a Pan-India player. This partnership will enable Indigo Paints to widen its product offerings. Indigo Paints will soon be launching a full range of waterproofing and construction chemicals targeting the retail consumers”, commented Mr. Hemant Jalan, CMD of Indigo Paints Ltd.