Pidilite to hold 50%stake in joint venture with (ICA)
National, April 26, 2016: Pidilite Industries Ltd. a leading manufacturer of adhesives, sealants, construction chemicals, consumer adhesive and specialty chemicals announced today that they have entered into a definitive agreement with Industria Chimica Adriatica Spa(ICA), a leading wood finish manufacturer based in Italy. As part of this agreement Pidilite will have 50% of the shareholding in the Joint Venture Company (JVC) and balance will be held by ICA and the India based distributor Pratik Mehta.
Wood Coat Private Limited is a wholly owned subsidiary of the company and was incorporated in Nov 2015. As part of the joint venture,Pidilite , along with its wholly-owned subsidiary, Fevicol Company Ltd, will hold 50% of the shareholding in Wood Coat Private Ltd (the Joint Venture Company) and the remaining 50% of the shareholding will be held by ICA and partner of Italcoats, a partnership firm and distributor of ICA wood finishes in India. The JVC will initially engage in high technology wood finish business in India and other select countries.
The Joint Venture Company will acquire the current wood finish distribution business of Italcoats and will be exclusive distributor of ICA wood finishes in India and other select countries (Distribution Agreement). The Joint Venture Company will also acquire technology and knowhow for manufacture of select wood finish products from ICA and shall be entitled to manufacture ICA wood finishes for marketing, distribution and sales in India and other select countries. The board has approved an equity investment of upto Rs.637.50 million on or before 15th of May 2016 and a further equity investment of uptoRs. 625 million in accordance with the business requirements of the JV Company.
The combination of leading European Wood finish company, ICA and leading building material company Pidilite, will establish a winning combination with the aim to become a major player in premium wood finishes in India.
Statement from Mr. Sandro Paniccia, Chairman of ICA “With a strong local partner like Pidilite with presence in India and SAARC, and our deep understanding of the wood finish and world class technology, we have the unique winning combination to take a leadership position in premium wood finish in a very large and growing market like India and select markets of SAARC.”
Statement from Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd “Pidilite is pleased to announce this joint venture with ICA and Italcoat. ICA is a reputed brand in Indian Premium Wood Finish market with significant market share. Pidilite already has a strong presence in the wood working segment through its brands; we believe that the JV Company can significantly grow the market in India for these high quality wood finishes.”
Pidilite Industries Limited is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India. Our products range also includes paint chemicals, automotive chemicals, art materials and stationery, fabric care, maintenance chemicals, industrial adhesives, industrial, textile resins and organic pigments & preparations. Most of the products have been developed through strong in-house R&D. Our brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in the country. Some of our other major brands are M-Seal, Fevikwik, Fevistik, Roff, Dr.Fixit, Fevicryl, Motomax and Hobby Ideas.
ICA is a leading manufacturer of high technology coating for wood and is amongst the leaders in wood finish business in Europe. They also have direct presence through their subsidiaries in Germany, Spain, Poland, China, and also export to over 50 countries worldwide. ICA products have a reputation for high quality and have established a strong presence in high quality wood finishes across major markets. ICA product technology has been adapted to meet the Indian conditions and hence is the preferred choice of Interior designers and wood polish contractors and wood working industry across major cities in India.