Ceramic Meets Chemistry: Somany Seals Stake in Dura Build Care

Somany Ceramics Ltd has formally concluded acquisition of majority equity stake in Dura Build Care Private Limited, a strategic expansion in the construction chemicals business. The acquisition forms Somany's strategy of diversification of portfolio and acquisition of high-growth adjacencies in the building materials space.

Acquisition Information
Somany Ceramics has acquired up to 52 percent of the equity of Dura Build Care for a consideration of about 105 million rupees in cash.
- The deal was completed in tranches and is completed in full

- Dura Build Care shall be a subsidiary corporation under the corporate holding of Somany
- The acquisition is not a related party transaction, thus clean governance is assured.

Strategic Rationale
This takeover is under Somany's strategy to diversify from tiles and sanitaryware into value-added product segments.
- Dura Build Care is engaged in high-performance building chemicals, a business that has high demand

- The deal provides Somany with greater production capacity and innovation in surface solutions

- It allows the company to offer retail and institutional clients total infrastructure and decor solutions

Market Impact
Dura Build Care had a turnover of 151 million rupees in FY 2023–24, a reflection of steady performance in the face of macroeconomic hurdle. With the support of Somany, the company is likely to report growth and increase its market reach. Prospects This acquisition is a strategic step towards building a more robust and diversified business model. Somany Ceramics would be in a position to leverage synergies between its product categories and derive benefit from increasing opportunities in India's infrastructure boom.

 Sources: Business Upturn, MarketScreener, Economic Times, Somany Ceramics Corporate Filings