Adhesives and industrial chemicals manufacturer Pidilite today roped in Italy’s Industria Chimica Adriatica Spa as a joint venture (JV) partner in its wholly-owned arm Wood Coat Pvt Ltd.
The company said its board has approved execution of definitive agreements with Industria Chimica Adriatica Spa (ICA).
“As part of joint venture, the company, along with its wholly-owned subsidiary, Fevicol Company Ltd, will hold 50 per cent of the shareholding in Wood Coat Pvt Ltd and the remaining 50 per cent of the shareholding will be held by ICA and Italcoats,” Pidilite said in a BSE filing.
Italcoats is a partnership firm and distributor of ICA wood finishes in India.
It further said: “The board has approved an equity investment of up to Rs 63.75 crore on or before May 15, 2016 and a further equity investment of up to Rs 62.5 crore.”
The joint venture will acquire the current wood finish distribution business of Italcoats and will be exclusive distributor of ICA wood finishes in India and other select countries.
“The joint venture will initially engage in high technology wood finish business in India and other select countries,” the company added.