Orient Ceramics to acquire majority stake in Bell Ceramics for Rs15.85 crore
22 Sep 2010
New Delhi-based Orient Ceramics & Industries (OCIL), one of India's largest ceramic tiles manufacturer, today offered to buy 62.92 per cent of Bell Ceramics's equity shares from its promoter Shiv Jatia for Rs20.69 a share, valuing the stake at Rs15.85 crore.
Since market regulations requires that any stake beyond 15 per cent in a company automatically triggers a mandatory open offer to buy an additional 20 per cent, OCIL said that it would also make an open offer to the shareholders of BCL for the acquisition of up to 24,34,762 shares or 20 per cent of voting rights.
The acquisition of majority of stake in Bell is in line with OCIL's inorganic growth strategy. The combined turnover of OCIL and BCL will make OCIL the fourth largest tile company in the country and the one with the largest installed capacity amongst all tile manufacturers in India and also the only one to have plants in North, West and South India.
OCIL has its plant in North India and generates majority of its sales in North and East India whereas BCL has plants in West and South India where most of its market is. It manufactures a wide range wall and floor tiles under brands Orient, Stiler and Europa.
Bell is a manufacturer of ceramic glazed tiles. It has two strategically located plants near major Indian markets – one near Vadodra in Gujarat and the other near Bangaluru, Karnataka in Southern India one of the largest consumers of ceramic tiles in India.
The total installed capacity of both the plants is 146 lakh sq mts per annum.
