Asian Paints Acquires Remaining 40% Stake, Makes White Teak Fully-Owned Unit

30 Jun 2025 , 11:30 AM

Asian Paints Ltd, India’s largest paint manufacturer, has taken full ownership of Obgenix Software Private Ltd, the company behind premium lighting brand White Teak, by acquiring the remaining 40% stake for ₹188 crore.

The transaction was completed on June 27, with Asian Paints purchasing the equity from White Teak’s promoters Pawan Mehta and Gagan Mehta, according to a stock exchange filing. With this buyout of 1,60,400 equity shares, Asian Paints now owns 100% of White Teak, making it a wholly owned subsidiary of the company.

Asian Paints had earlier acquired 49% in April 2022, followed by 11% in June 2023, before completing the full acquisition this week. The company said this move aligns with its broader vision of evolving into a full-fledged home décor brand, extending beyond paint to include decorative lighting and accessories. The acquisition also reflects Asian Paints’ push to build a comprehensive lifestyle portfolio across categories where visual aesthetics play a central role.

In the financial front, the company’s Q4 FY25 performance highlights shows, volume growth in the decorative paints segment was reported at just 1.8%. Net profit fell sharply by 45% YoY, landing at ₹700.8 crore. A major part of this shortfall was attributed to an exceptional item worth ₹179.81 crore, which included an impairment loss of ₹101.3 crore in a subsidiary and a valuation loss of ₹78.51 crore linked to derivative contracts for White Teak. Revenue for the quarter declined by 4.3% YoY to ₹8,359 crore. Operating earnings also took a hit EBITDA dropped 15% year-on-year to ₹1,407 crore.

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