Asian Paints Buys More Stake in White Teak: A Bright Move for the Home Decor Market

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Asian Paints Acquires Additional Stake in White Teak: What It Means for the Company and the Industry

Asian Paints, India’s largest paint company, has acquired an additional 11% stake in White Teak, a home decor company that specializes in decorative lighting, for Rs 54 crore. This brings Asian Paints’ total stake in White Teak to 60%, making it a subsidiary of the company. The remaining 40% of the equity share capital will be acquired during FY26 for a maximum consideration of Rs 360 crore.

This acquisition is part of Asian Paints’ strategy to diversify its product portfolio and enter new segments of the home improvement market. White Teak was founded in 2014 by brothers Pawan and Gagan Mehta and has grown rapidly to become one of the leading players in the decorative lighting segment. The company offers a range of products such as chandeliers, floor lamps, table lamps, wall lights, ceiling lights, and accessories through its online platform and offline stores.

Why Decorative Lighting?

Decorative lighting is a fast-growing segment of the home decor market, estimated to be worth around Rs 1,200 crore and growing at a healthy rate of around 20%. It is dominated by the unorganized sector, mostly through imports from China. However, there is a growing demand for branded and quality products that offer design, functionality, and durability.

Asian Paints sees a huge opportunity in this segment as it complements its existing offerings such as paints, wallpapers, furnishings, kitchen solutions, and bath fittings. The company believes that decorative lighting can enhance the aesthetics and ambiance of any space and create a distinctive identity for the customers.

By acquiring White Teak, Asian Paints gains access to its design capabilities, product portfolio, distribution network, and customer base. The company also plans to leverage its own brand equity, scale, and reach to grow the business further. Asian Paints expects White Teak to contribute significantly to its revenue and profitability in the coming years.

How White Teak Performed in FY23?

White Teak reported a stellar performance in FY23, with its revenue nearly doubling to Rs 108 crore from Rs 57 crore in FY22. The company also achieved a robust growth of around 50% in its online sales and expanded its offline presence to 12 cities across India. The company also recorded the highest-ever 225% year-on-year growth in exports by volume in the last 12 months.

White Teak’s growth was driven by its vital product innovation, customer engagement, and marketing initiatives. The company launched over 300 new products in FY23, covering various styles, themes, and price points. The company also invested in enhancing its online platform, user interface, content, and delivery. The company also leveraged social media platforms such as Instagram, Facebook, and YouTube to showcase its products and interact with customers.

White Teak also benefited from the increased demand for home improvement products amid the pandemic-induced lockdowns and work-from-home trends. The company witnessed a surge in orders from customers who wanted to revamp their homes and create a comfortable and stylish living environment.

What’s Next for Asian Paints and White Teak?

Asian Paints is confident that White Teak will continue to grow at a healthy pace in the future as it taps into the huge potential of the decorative lighting market. The company also plans to integrate White Teak’s products with its own offerings and provide a holistic solution for home improvement. The company also aims to leverage its strong distribution network and brand recall to increase the visibility and reach of White Teak’s products.

White Teak also has ambitious plans to expand its product portfolio and customer base in the coming years. The company intends to launch new categories such as furniture, rugs, mirrors, and art pieces that will complement its existing lighting products. The company also plans to increase its offline presence in more cities and towns across India and explore new markets abroad.

The acquisition of White Teak is expected to create value for both Asian Paints and White Teak as they synergize their strengths and capabilities. It is also expected to benefit the customers who will get access to a wider range of quality products that will enhance their homes and lifestyles.

Disclaimer: This blog post is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.

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