Asian Paints Ltd is entering the kitchen space by acquiring a majority stake in the Sleek Group that has a significant presence in the kitchenware market.

Asian Paints believes that the acquisition is a strategic fit for its entry into home improvement segment.

In a release filed with the stock exchanges, the company said that its board has approved acquisition of 51 per cent stake in the Sleek Group.

Sleek Group is into manufacture of kitchen and kitchen components like wire baskets, cabinets, appliances etc. It has more than 30 showrooms, including shop-in-shops, and a network of more than 250 dealers.

Asian Paints said that it chose to make a foray into the kitchen arena since it felt that the modern kitchen space is currently undergoing “an inflection, has very few organised pan-India players and is growing rapidly’’.

K.B.S. Anand, MD & CEO, Asian Paints, is confident of Sleek being a “meaningful and enriching partner’’ for it and would provide significant synergy.

Sleek’s Web site ( >www.sleekworld.com ) claims that it has a professional team of interior designers with specialisation in designing kitchens.

Kitchen accessories

It is one of the largest manufacturers and marketers of kitchen accessories and products in the country. It installs more than 25,000 kitchens across India and overseas every year.

The group has a network of more than 450 Sleek dealers across the country selling an “average of 20,000 kitchens and components for over 9 lakh kitchens every year’’.

However, Asian Paints did not disclose the cost of its acquisition.

The company’s stock has had a strong run during the past one year, surging over 60 per cent from a 52-week low of Rs 3,001 it had touched on March 20 last year to a 52-week high of Rs 5,030 it touched yesterday on the NSE.

Even today’s market mayhem made only a small dent in its stock price, with the scrip shedding just Rs 102.50 to trade at Rs 4,900 minutes before the market was to close.

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