NEW DELHI, May 11: DCM Shriram group firm Fenesta, which is into uPVC and aluminium windows and doors, has acquired 53 per cent equity stake in DNV Global for Rs 44 crore to expand its business.
The deal is expected to be completed in next 2 months.
The acquisition of DNV Global will help Fenesta in backward integration and opportunity to create new line of business (hardware).
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“This strategic investment marks a significant step in Fenesta’s vision to enhance customer experience, deepen vertical integration, enhance product reliability, achieve accelerated growth in scale and unlock operational synergies across its supply chain,” DCM Shriram said in a statement on Sunday.
The total acquisition cost is Rs 44 crore, which includes Rs 31 crore by subscribing to fresh equity share capital of DNV Global and Rs 13 crore by purchase of equity shares from the existing promoters/shareholders.
Saket Jain, Business Head, Fenesta Building Systems, said, “The acquisition …is a natural extension of our long-term growth strategy. Hardware plays a critical role in defining both the performance and user experience of our window and door systems.” ”With this move, we not only deepen our supply chain capabilities but also gain the agility to innovate and expand our hardware offerings across new home improvement segments,” he added.
This integration will accelerate Fenesta’s ability to deliver smarter, more durable, a better product range and holistic solutions, he said.
Fenesta, a division of DCM Shriram Ltd, is one of the leading brands for uPVC and aluminium windows and doors, solid panel doors, and facades.
Established in 2013, DNV Global turnover in the last fiscal stood at Rs 60 crore.
DCM Shriram is into sugar, fertilizers, chemicals businesses apart from Fenesta. (PTI)
