Insolvency: Sheenlac Paints plans takeover of Jenson & Nicholson subsidiary

Although Sheenlac Paints had originally targeted to gradually acquire the brand as well as a majority stake in JNPPL in a 5-year timeframe, it is now rushing to take control of this JV entity

Tamil Nadu-based Sheenlac Paints is eyeing to take full control of its joint-venture (JV) with Jenson & Nicholson India Ltd (JNIL) even as the latter faces the insolvency resolution process under the National Company Law Tribunal (NCLT).

In February last year, Sheenlac Paints entered into a JV agreement with JNIL whereby the rights over the J&N brand was transferred to this JV entity — Jenson & Nicholson Paints Pvt Ltd (JNPPL). It was agreed that although Sheenlac Paints would have a 49 per cent minority stake in this company, the entire managerial and operational control lay with Sheenlac. The rest