Asian Paints acquires Sri Lanka company

Our Corporate Bureau
30 October 1999

Asian Paints Ltd has acquired a 76 per cent stake in Sri Lanka's second largest paint company, Delmege Forsyth & Co (Paints), for a consideration of around Rs 3.6 crore. The acquisition, made through subsidiary Asian Paints International Ltd, is the the company's first-ever overseas acquisition.

The Rs 16 crore Delmege Forsyth has a 12 per cent share of Sri Lanka's Rs 130 crore paints market. British multinational ICI is the market leader in that country.

The acquisition is Asian Paints' first step in the direction of expansion of its international operations after the announcement of its Vision 2003 plan, according to an official release. The company's other overseas ventures are created from the ground up.

The company has embarked on an ambitious plan to emerge as one of the top ten decorative coatings companies in the world by 2003, and achieve a turnover of Rs 2,700 crore, the release says. Currently, Asian Paints ranks among the top 15 decorative coatings companies in the world.

According to Ashwin Dani, vice-chairman and managing director, Asian Paints, the company will expand further in emerging markets and has targeted a turnover of $50 million through international operations. "We are not interested in entering developed markets, and we will look at companies in emerging markets in Africa, South-Eeast Asia and neighbouring countries."

Mr Dani says, "The acquisition in Sri Lanka will further strengthen our presence in the sub-continent." The company is already market leader in India and Nepal. The company is the largest producer of paint in the country with 42 per cent market share, the release states.