Asian Paints Acquires Remaining 40% Stake, Makes White Teak Fully-Owned Unit

Asian Paints Ltd, India’s largest paint manufacturer, has taken full ownership of Obgenix Software Private Ltd, the company behind premium lighting brand White Teak, by acquiring the remaining 40% stake for ₹188 crore.

The transaction was completed on June 27, with Asian Paints purchasing the equity from White Teak’s promoters Pawan Mehta and Gagan Mehta, according to a stock exchange filing. With this buyout of 1,60,400 equity shares, Asian Paints now owns 100% of White Teak, making it a wholly owned subsidiary of the company.

Asian Paints had earlier acquired 49% in April 2022, followed by 11% in June 2023, before completing the full acquisition this week. The company said this move aligns with its broader vision of evolving into a full-fledged home décor brand, extending beyond paint to include decorative lighting and accessories. The acquisition also reflects Asian Paints’ push to build a comprehensive lifestyle portfolio across categories where visual aesthetics play a central role.

In the financial front, the company’s Q4 FY25 performance highlights shows, volume growth in the decorative paints segment was reported at just 1.8%. Net profit fell sharply by 45% YoY, landing at ₹700.8 crore. A major part of this shortfall was attributed to an exceptional item worth ₹179.81 crore, which included an impairment loss of ₹101.3 crore in a subsidiary and a valuation loss of ₹78.51 crore linked to derivative contracts for White Teak. Revenue for the quarter declined by 4.3% YoY to ₹8,359 crore. Operating earnings also took a hit EBITDA dropped 15% year-on-year to ₹1,407 crore.

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