Asian Paints Acquires Full Ownership of White Teak for ₹188 Crore

Asian Paints Ltd, India’s leading paint manufacturer, has acquired the remaining 40% stake in Obgenix Software Pvt Ltd, which owns the premium lighting and décor brand White Teak, for ₹188 crore. The deal, completed on Friday, brings Asian Paints’ total ownership to 100%, making White Teak a wholly owned subsidiary.

The stake was bought from White Teak’s promoters, Pawan Mehta and Gagan Mehta. With this, Asian Paints acquired 1,60,400 equity shares, solidifying its control over the brand known for decorative lighting, fans, and accessories.

Asian Paints began investing in White Teak in April 2022 with a 49% stake, later adding 11% in June 2023. The company stated that this full acquisition is part of its broader strategy to expand beyond paints into holistic home décor offerings.

“This move strengthens our position in the home décor space by integrating lighting and decorative accessories into our ecosystem,” the company said in its regulatory filing.

Following the announcement, shares of Asian Paints rose 3.06% to close at ₹2,359.25 on the Bombay Stock Exchange.

Financial Headwinds in Q4

However, the acquisition news comes alongside weaker-than-expected Q4 results. For the March quarter, Asian Paints reported a volume growth of just 1.8% in its decorative segment—falling short of market expectations of 4–5% growth.

Net profit plunged 45% year-on-year to ₹700.8 crore, below the projected ₹1,105 crore. This drop was largely due to exceptional items totaling ₹179.81 crore. The losses include an impairment of ₹101.3 crore in one of its subsidiaries and a fair valuation loss of ₹78.51 crore related to derivative contracts for future stake purchases in White Teak.

Despite the profit decline, the full acquisition signals Asian Paints’ commitment to diversifying into adjacent categories amid a softening core business.