Indigo Paints acquires 51% stake in Apple Chemie India

Indigo Paints acquires 51% stake in Apple Chemie India

ACIPL is a fast growing company in the construction chemicals and waterproofing space

  • By ICN Bureau | April 04, 2023

Indigo Paints Lid. (IPL) has closed a transaction with the promoters of Apple Chemie India Private Limited (ACIPL) for acquiring 51% stake in ACIPL by a combination of primary capital infusion and secondary share purchase transaction with the promoters.

Indigo Paints also has an option to acquire additional stake in Apple Chemie at the end of three years. ACIPL is a fast growing company (5 year CAGR of around 30%) in the construction chemicals and waterproofing space, manufacturing and supplying products in the B2B space to various reputed infrastructure projects in the western states of India. Apple Chemie sales in FY 22 was Rs. 32 crores and is expected to clock over Rs. 41 crores in FY 23.

Vivek Naik, the main promoter of ACIPL, is a former national President of Indian Concrete Institute, and has vast experience of over 30 years in the construction chemicals and waterproofing industry. Vivek Naik, along with his son, Rohit Naik built Apple Chemie into a formidable company with a strong track record of growth and profitability and established a marquee client base.

With this partnership, Indigo Paints will be entering into the adjacent areas of construction chemicals and waterproofing space. The size of the target market is estimated to be greater than Rs. 15,000 crore and is expected to grow in double digits. ACIPL will continue to lead the company and expand the business pan-India in the B2B segment.

“Apple Chemie has a wide range of products which are complementary to Indigo Paints. They also have a marquee clientele which includes all major engineering and construction conglomerates in the country. With the government's massive infrastructure spending plan and the established client base, Apple Chemie is primed to become a pan-India player. This partnership will enable Indigo Paints to widen its product offerings. Indigo Paints will soon be launching a full range of waterproofing and construction chemicals targeting the retail consumers,” commented Hemant Jalan, CMD, Indigo Paints. 

“Apple Chemie is an R&D driven organization with a strong track record of developing innovative products targeting the construction chemicals and waterproofing sector for infrastructure projects in India. We are delighted to embark on this journey and be a part of the Indigo Paints team. This partnership will help us maximise the business potential, leveraging on the wide distribution infrastructure of Indigo Paints, and grow Apple Chemie into a national brand,” said Vivek Naik, MD, Apple Chemie India. 

Acquizon Advisory, Acumen M&A Advisors, Clove Legal acted as the advisors to Indigo Paints and Kreo Capital, Amit Rajkotia & Associates acted as advisors to Apple Chemie India for this transaction.

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