Mumbai: Japanese surface solutions company Aica Kogyo has issued an open offer to acquire an additional 26% of laminates major Stylam Industries, weeks after its promoters sold 40% of their stakes for ₹1,525 crore. The company has launched an open offer to buy 44 lakh shares of the company at a price of ₹2,250 per share.
Aica Kogyo is a leading manufacturer of chemical and building material products, including high pressure laminates, construction materials, adhesives and coatings. It has manufacturing bases across Asia and North America.
The company is already present in India through its local subsidiary AICA Laminates India, which manufactures decorative laminates under the Sunmica and AICA brands at its factory at Rudrapur, Uttarakhand.
Stylam Industries is India’s second-largest decorative panels manufacturing company, with a market share of about 28%. The company is currently debt-free and gets almost two-thirds of its revenues from exports.
Despite this, the company is facing pressures to its market positions due to the fragmented market and its linkage to the real estate sector. Also, cheap imports from China and Southeast Asia have also affected the company’s bottom line.
Though further details haven’t been shared, acquiring Stylam Industries is a natural progression for the company, allowing it to cement its reach across the country. The company could consolidate its operations in India, helping it gain a bigger market share, though AICA Laminates India’s current market share isn’t available yet.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
