In Sleek expansion, Asian Paints gets into the kitchen

Asian Paints has entered the kitchen solutions space with the acquisition of Sleek International Pvt Ltd.

The paint major has invested Rs 120 crore to pick up a 51 per cent stake. Sleek International’s promoters will hold the rest.

The Mumbai-based company is engaged in manufacturing, selling and distributing kitchens and kitchen components, including wire baskets, cabinets, appliances and accessories. It has a retail network of over 30 outlets and 250 dealers.

Sleek promoters Rajesh T. Ahuja and Monesh T. Ahuja will continue to be on the board of Sleek International Private Ltd and Asian Paints will be nominating two non-executive directors on the board of Sleek."

K. B. S. Anand, Managing Director, Asian Paints, said the acquisition will help the company enter similar but newer segments, such as home improvement, in future.

Of late, the modern kitchen space in India has been attracting investments from both private equity (PE) firms and large corporate firms. Earlier this year, kitchen appliances company TTK Prestige secured investments of over Rs 300 crore from global PE investor Cartica Capital.

Last year, Reliance capital’s PE arm invested close to Rs 120 crore in Gandhimati Appliances, owner of the Butterfly brand.

According to industry experts, the Indian modular kitchen market will continue to record significant growth on the back of an increase in the number of housing projects, rising disposable incomes, lifestyle changes and the emergence of nuclear families.

Products are also expected to become more affordable with a variety of pricing options and growth in the organised retail sector.

Changing perspectives on home aesthetics, higher incomes and a rise in the number of working women are also expected to drive growth.

> priyanka.pani@thehindu.co.in

(This copy has been corrected for error.)

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