Mumbai — Adhesive manufacturing company Pidilite Industries has bought the majority of Pune-based CIPY Polyurethanes.
Pidilite paid INR 964 m ($15.2 m) for 70% of CIPY Polyurethanes in an all-cash deal.
‘The move will enable Pidilite to expand its presence in the fast-growing resin flooring and floor coating category,’ said Bharat Puri, Managing Director, Pidilite Industries in a statement.
Rapid economic growth and rising construction spending in countries like India continue to drive growth in the surface flooring market.
According to a Global Market Insights report, increases in construction spending, particularly in emerging regions of Latin America, MEA and Asia Pacific are driving the surface coatings market.
The consultants said that Asia Pacific accounted for over 40% of total global construction spending in 2013. The report said that China spent $1.78 trn, India $427 bn and Indonesia $267 bn on the sector at that time.
‘Partnership with Pidilite will make us stronger and accelerate growth in the floor coating category,’ said Dr Cipy, MD, CIPY Polyurethanes.
CIPY Polyurethanes had turnover of INR 1.1 bn fiscal 2016-17.
CIPY was incorporated as a company in November, 1994 with two production facilities at Shirwal, Pune and Bommasandra a suburb of Bangalore.
Cipy makes basic ingredients such as urethane pre-polymers and quasi-polymers, amine curing agents, modified epoxies, polyurethane dispersions, moisture curing urethanes, polyurea pre-polymers and industrial colorants. It produces more than 300 varied products.