Kolkata, Jun 11 (PTI) Electrosteel Castings Ltd on Thursday said it is exploring entry into the paints and coatings sector through acquisitions, strategic partnerships and organic capability development, as part of its diversification strategy.
The company, however, did not disclose any investment outlay, timeline or potential acquisition targets.
It is evaluating multiple entry routes, including acquiring established paints and coatings businesses with strong technical capabilities and industrial customer relationships, besides partnering with domestic and international players in industrial, protective and infrastructure coatings, according to a statement.
The exporter of ductile iron (DI) pipes and water infrastructure manufacturer currently has captive industrial coatings production.
ECL said the move is driven by India’s expanding infrastructure, capital expenditure cycle and growing adoption of coatings across construction and industrial applications.
The company noted that the domestic paints and coatings market is projected to reach Rs 29,000 crore over the next five years, growing at around 9 per cent CAGR over the next decade.
The ECL said it has constituted a dedicated team to identify and evaluate opportunities and is seeking introductions to potential acquisition targets, investment platforms and strategic partners across the paints and coatings value chain.
The company’s DI pipe and water infrastructure business will continue to remain its operational core even as it explores adjacent growth opportunities, according to the statement. PTI BSM BDC
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