Sirca has announced acquisition of the entire business under the brand name “Wembley” from Wembley Paints & Chemicals and Indo Wembley Paints Private Limited.
- It’s not acquisition of an entity but only the brand, it’s clients and identified employees.
- No manufacturing facility acquisition is involved.
- Consideration for acquisition is Rs 8.15 cr.
With this acquisition, Sirca will integrate Wembley’s full range of products, including thinners, wall paints, enamels, NC (nitrocellulose), melamine, and other coatings, into its portfolio.
Wembley is expected to increase Sirca’s turnover by Rs 100 cr i.e., about 25% over the current base.
Wembley’s gross margins are significantly lower than Sirca’s. However, after integration, Sirca’s management doesn’t expect any signifiant drag on it’s overall margins due to the scale and benefits from Sirca’s efficiencies.
Commenting on the acquisition, Mr. Sanjay Agarwal, Managing Director of Sirca stated that “This acquisition aligns with our vision to expand our product offerings and cater to a wider customer base. Brand “Wembley” has a strong legacy of last 40 years, and we are excited to integrate its high-quality products into Sirca’s portfolio. We are confident that this will accelerate our growth and enhance our market leadership in the industry. The acquisition will assist in to penetrating deeper into the untapped markets and unleash the real potential of Sirca Paints. Also, this strategic move will benefit all stakeholders, including the investors of the company.”