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The adhesives and industrial chemicals maker Pidilite Industries Ltd has entered into an agreement with Italy’s Industria Chimica Adriatica Spa (ICA), a wood finish manufacturer, for joint stakeholding in Wood Coat, Pidilite’s wholly owned subsidiary incorporated in November 2015.
“The board of Directors (Board) of the Company has approved execution of definitive agreements with Industria Chimica Adriatica SPA (ICA), a leading wood finish manufacturer based in Italy,” said Pidilite Industries in a BSE filing on April 25, 2016.
As part of the joint venture, Pidilite along with its wholly owned subsidiary, Fevicol Company, will hold 50 percent of the shareholding in the JV, Wood Coat Pvt Ltd, while the remaining 50 percent will be held by ICA and Italcoats, a partnership firm and distributor of ICA wood finished in India. The joint venture company will initially engage in high technology wood finish business in India and other select countries.
The joint venture company will acquire the current wood finish distribution business of Italcoats and will be exclusive distributor of ICA wood finished in India and other select countries. The joint venture company will also acquire technology and knowhow for manufacture of select wood finish products from ICA and will be entitled to manufacture ICA wood finishes for marketing, distribution and sales in India and other select countries.
“The board has approved an equity investment of up to Rs 63.75 crore on or before May 15, 2016 and a further investment of upto Rs 62.5 crore in accordance with the business requirement of the joint venture company,” added Pidilite in the filing.
