Asian Paints expands operation; acquires Causeway Paints Lanka

Indian multinational paint company-Asian Paints has informed the BSE in a filing that its wholly-owned subsidiary Berger International, Singapore has acquired 100 per cent stake in Causeway Paints Lanka in an all-cash deal. 

The primary objective behind the acquisition is to enhance the groups present in Sri Lankan market, where the company already has its operations. Causeway Paints Lanka is an important player in the Sri Lankan coating market with over two decades of experience mainly in decorative and automotive refinishing segment. 

Asian Paints via acquisition of smaller paint companies is trying to expand its revenue base and at the same time, set up a global presence where demand for its products are likely to grow. The acquisition will boost the top-line for the paint maker as revenues for FY16 was around Rs 253.60 crore.

Shares of Asian Paints were trading flat with a negative bias at Rs 975 on NSE.