Kansai Nerolac Completes Sri Lankan Unit Divestment

Kansai Nerolac Paints Limited has completed the divestment of its entire stake in its Sri Lankan operations. The company has sold its 60% equity stake in Kansai Paints Lanka (Private) Limited to Atire Private Limited, a Sri Lankan entity, for LKR 18 lakh (approximately ₹5.25 lakh).

Transaction Completion Details

The divestment has been finalized, marking a complete exit from the Sri Lankan subsidiary operations. The transaction received regulatory approval, and the agreement has been executed.

Transaction Parameter	Details
Stake Sold	60% of total equity share capital
Buyer	Atire (Private) Limited
Consideration Received	LKR 18.00 lakh (approximately ₹5.25 lakh)
Board Approval Date	December 11
Agreement Execution	December 16
Transaction Status	Completed

Financial Impact and Subsidiary Performance

The Sri Lankan subsidiary's financial contribution to the parent company was minimal. As of March 31, the subsidiary contributed LKR 2.03 crores in turnover, representing approximately 0.008% of Kansai Nerolac's consolidated turnover.

Financial Metrics	Amount
Subsidiary Turnover	LKR 2.03 crores (₹0.58 crores)
Percentage of Consolidated Turnover	0.008%
Net Worth	Negative LKR 6.44 crores (₹1.93 crores)
Sale Consideration	LKR 18.00 lakh (₹5.25 lakh)

Buyer Profile and Regulatory Compliance

Atire (Private) Limited is a group company of Anunine Holdings (Private) Limited, a leading Sri Lankan conglomerate with diversified operations in packaging, tyre manufacturing, energy, agriculture, recycling, and paper manufacturing. The transaction does not fall within related party transactions and has been completed at arm's length.

Kansai Nerolac has fulfilled all regulatory requirements under SEBI Listing Regulations, submitting detailed information as mandated under Regulation 30. Following the completion of this divestment, Kansai Paints Lanka (Private) Limited has ceased to be a subsidiary of Kansai Nerolac Paints Limited, marking the company's complete exit from Sri Lankan market operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.73%	+0.80%	+3.76%	-3.67%	-8.85%	-42.17%

Kansai Nerolac Paints , a leading player in the Indian paint industry, has recently outlined its financial objectives and capital expenditure plans during a conference call. The company has set ambitious targets for its EBITDA margins and shared insights on its growth prospects.

EBITDA Margin Targets

Kansai Nerolac has set clear goals for its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins:

Time Frame	EBITDA Margin Target
Short-term	13-14%
Long-term	15%
FY26	Above 13%

The company's management expects to maintain margins above 13% for FY26, supported by favorable material costs.

Capital Expenditure Plans

Kansai Nerolac has announced significant capital expenditure plans:

The company plans to invest over ₹200.00 crores for regular activities.
This investment underscores Kansai Nerolac's commitment to growth and operational improvements.

Growth Prospects

The management of Kansai Nerolac Paints has expressed optimism about future growth:

Q4 FY26 is expected to show improved growth compared to previous quarters.
This positive outlook applies to both decorative and industrial segments of the company's business.

The company's strategic focus on maintaining healthy EBITDA margins while investing in regular activities suggests a balanced approach to financial management and growth. As the paint industry continues to evolve, Kansai Nerolac's clear financial targets and investment plans may position it to capitalize on emerging opportunities in both decorative and industrial segments.

Investors and market observers may want to keep a close eye on Kansai Nerolac's performance in the coming quarters to see how well the company executes its plans and achieves its stated financial objectives.