On July 7, during early trading, the share price of JK Cement experienced an increase following its subsidiary’s decision to raise its ownership in Acro Paints, a company specializing in paint and construction chemicals. JK Maxx Paints, formerly known as JK Paints and Coatings, invested Rs 60.24 crore in the second phase, acquiring a 20 percent equity stake in Acro Paints. As a result, JKMPL now holds an 80 percent equity share of Acro Paints, effective immediately, according to a filing with the stock exchange. Read More Business News on our website.

This acquisition is set to be completed within a year from January 6, 2023. In December 2022, JK Paints and Coatings had entered into a share purchase agreement with Acro Paints and its shareholders, initially acquiring a 60 percent controlling stake in the company for Rs 153 crore. The remaining 40 percent stake will be acquired over the course of 12 months.

Acro Paints is a prominent manufacturer of architectural and high-performance paints and coatings in northern India. JK Cement, a cement manufacturing company based in northern India, aims to enhance its market presence by expanding its capacity in the central region, which is experiencing high demand.

Additionally, venturing into the paint business will provide synergistic benefits, particularly in terms of marketing and sales, as it aligns with the company’s existing white cement and wall putty business. Currently, JK Cement has an installed capacity of 2.81 MTPA for white cement and wall putty, and it serves a combined network of 95,000 dealers and retailers in the grey cement, white cement, and wall putty segments, surpassing UltraTech’s capacity of 2 MTPA. At 9:22 am, JK Cement’s stock was trading at Rs 3,317.05 on the BSE, reflecting an increase of Rs 25.10 or 0.76 percent.

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