New Delhi, Sep 22 (IANS) Tiles manufacturing major Orient Ceramics and Industries (OCIL) Wednesday said it has acquired a 63 percent stake in Bell Ceramics in a deal worth Rs.15.8 crore.
The company also plans to invest around Rs.40 crore over the next year.
‘We have acquired 62.92 percent of Bell’s equity shares from its promoter Shiv Jatia for Rs.20.69 a share, valuing the stake at Rs.158.5 million,’ said Madhur Daga executive director, OCIL.
‘We will be investing whatever capex investment will be required. We expect it to be not more than Rs.40 crore over the next 12 months,’ he added.
Orient is also making an open offer to the shareholders of BCL for acquisition of up to 24,34,762 shares or 20 percent of voting rights.
‘The acquisition of majority of stake in BCL is in line with OCIL’s inorganic growth strategy,’ he said.
The combined turnover of the two entities will make OCIL the fourth largest tile company in the country and the one with the largest installed capacity amongst all such manufacturers in India.
‘With OCIL manufacturing experience and enhanced market potential for both the companies, we are confident of doing a turnaround of BCL’s performance and enhance OCIL’s own financial performance and provider better shareholder returns to investors,’ said Vijay Shankar Sharma, chief financial officer, OCIL.
The company which also launched its outlets in South Delhi along with three others in Faridabd, Chadigarh and Kolkata plans to have add more retail stores in the next few months.
‘We have launched our showroom in Greater Kailash-2 which will focus on selling stylish tiles which are made in India but styled in Spain,’ said Daga.
