Brilloca to acquire building products manufacturing business from HSIL for Rs 630 crore, Real Estate News, ET RealEstate

NEW DELHI: Brilloca, a wholly-owned subsidiary of Somany Home Innovation Ltd (SHIL), announced on Saturday that it will acquire the building products manufacturing business of HSIL Ltd in a sell-off for a cash consideration of Rs 630 crore.

Currently engaged in the marketing and distribution of construction products such as sanitary ware, faucets, plastic pipes and fittings, Brilloca said that after the acquisition it will be integrated upstream and have better control over the entire value chain, from manufacturing to after-sales.

“We have always had forward-looking strategies, and changing operating circumstances mean new initiatives. To that end, this acquisition is perfectly suited from Brilloca’s perspective for safe, sustained and accelerated business performance.” said SHIL Chairman and Non-Executive Director Sandip Somany. in a report.

With this initiative, he added, “We will further consolidate our market position in segments such as sanitary ware, faucets and plastic pipes and fittings, where we have demonstrated superior sector growth over the past six last quarters.

This transaction has been structured to provide both immediate benefits and future flexibility for SHIL to pursue its growth aspirations.

SHIL sells a range of building products and home appliances under the Hindware brand.

“As part of this transaction, all of HSIL’s building products operating facilities, including sanitary ware, faucets, plastic pipes and fittings, will be transferred to Brilloca,” the statement said.

EY was appointed independent valuation advisor for the transaction and AZB was the legal advisor, he added. PTI RKL ANU ANU

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