Adhesive manufacturer Pidilite Industries has acquired a majority stake in CIPY Polyurethanes in Pune, India.
Pidilite paid 964 million rupees (15.2 million U.S. dollars) for 70% of CIPY Polyurethanes in full cash.
"This transaction will allow Pidilite to expand its rapidly growing area of resin floor coatings," said Bharat Puri, general manager of Pidilite Industries, in a statement.
The rapid economic growth coupled with the growing construction spending in countries such as India have contributed to the growth of the flooring market.
According to a global market insight report, an increase in construction spending, especially in emerging regions in Latin America, the Middle East and Asia-Pacific region, is stimulating the growth of the flooring market.
Consultants said construction spending in the Asia Pacific region accounted for more than 40% of the global total in 2013. The report also said that China spent 1.778 billion U.S. dollars in the same period, India 427 billion U.S. dollars and Indonesia 267 billion U.S. dollars.
"Working with Pidilite will make us even stronger and accelerate the growth of floor coatings," said Dr. Cipy, General Manager of CIPY Polyurethanes.
CIPY Polyurethanes achieved revenues of Rs1.1 crore in fiscal year 2016-2017.
In November 1994, two production facilities in Punashwal, India and Bomasandra, on the outskirts of Bangalore, were merged to form CIPY.
CIPY Corporation makes basic raw materials such as urethane prepolymers, semi-prepolymers, amine curing agents, modified epoxies, polyurethane dispersions, moisture-curing polyurethanes, polyurea prepolymers and industrial colorants, Can produce more than 300 different products.