Big Acquisition Move: Company To Buy 56% Stake In Fabwood Solutions For Rs 42.70 Crore

Euro Pratik Sales Ltd has approved the acquisition of a controlling 56 per cent stake in Fabwood Solutions LLP for a total cash investment of Rs 42.70 crore, as the decorative-surface products company seeks a stronger presence in South India and a wider architectural wood portfolio.

The investment includes a capital infusion of Rs 8.40 crore into Fabwood Solutions, which will eventually own the business of Fab Wood, a proprietary concern owned by Tushar Ganatra. The board approved the transaction on September 23, 2026, and expects completion on or before October 8, 2026. No governmental or regulatory approval is required.

Fab Wood operates as a timber dealer and manufacturer of engineered wood solutions, cladding products, doors and other architectural wood applications. Its turnover rose to Rs 45.25 crore in FY26 from Rs 40.83 crore in FY25 and Rs 43.34 crore in FY24.

The acquisition gives Euro Pratik control of an established operating business through a newly incorporated entity. Fabwood Solutions LLP was formed on August 12, 2026, and has reported nil turnover for the preceding three years, reflecting its recent incorporation rather than the scale of the Fab Wood business proposed to be transferred into it.

The transaction value is equivalent to nearly 13 per cent of Euro Pratik’s FY26 consolidated net sales of Rs 334.96 crore. Fab Wood’s FY26 turnover, meanwhile, was about 13.5 per cent of Euro Pratik’s FY26 revenue, indicating that the acquired business could provide a meaningful addition to the company’s regional sales platform, although the announcement does not specify the timing or financial terms of the business transfer into the LLP.

Euro Pratik said the acquisition is intended to improve regional reach and brand visibility, enable deeper penetration in South India and expand its surface-decorative offerings. The strategic logic fits its stated growth approach of combining design-led decorative products with distribution expansion and selective acquisitions.

The company’s core business is decorative interior surfaces, particularly wall panels and premium laminates. It has also pursued inorganic expansion in recent periods, including majority investments in URO Veneer World, Euro Pratik Star LLP and Euro Pratik Craft LLP during FY26. URO Veneer World, in particular, provided the group with an additional route into the South Indian market and retail-facing decorative-product channels.

Euro Pratik had reported FY26 consolidated revenue growth of 17.6 per cent to Rs 335 crore, while profit after Tax increased to Rs 77.2 crore from Rs 75.7 crore a year earlier. Management had linked the relatively moderate profit growth to acquisition-related costs, international development and investments in organisational capability.

The latest acquisition also adds an execution consideration. Euro Pratik operates with an asset-light, sourcing and distribution-oriented model, while Fab Wood brings timber, engineered wood, cladding and door-related offerings. The eventual benefits will depend on integration, product positioning and the ability to use Fab Wood’s regional presence without adding disproportionate working-capital requirements.

Euro Pratik said the deal is not a related-party transaction. Its promoters, promoter group and group companies have no interest in Fabwood Solutions or the business being acquired.

As of 3:27 pm on September 23, 2026, Euro Pratik Sales shares were trading at Rs 219.70, up 0.62 per cent from the previous close of Rs 218.35. The stock was about 42.6 per cent below its 52-week high of Rs 382.95 and around 4.6 per cent above its 52-week low of Rs 210.05, placing the acquisition announcement against a relatively subdued market valuation backdrop. The company’s market capitalisation stood at Rs 2,231.54 crore.

Disclaimer: The article is for informational purposes only and not investment advice.