December 2011
« Nov   Jan »

Contact us

Kreon to pick up 51% in Aran

As part of its strategic diversification, Chennai-based non-banking finance company (NBFC) Kreon Financial Services Limited is planning to acquire around 51 per cent stake in modular kitchen company Aran Kitchen World India Private Limited.
In a filing to the BSE on Friday, Kreon Financial said that it had signed a share purchase agreement with the promoters of Aran Kitchen World. Aran Kitchen World is a joint venture between Italian modular kitchen firm Aran World and Chennai-based Bohra Kitchens of the Bohra Group, with stake holdings of 49 per cent and 51 per cent respectively.

“The strategic investment will provide the company grow inorganically and have its presence in one of the most growing business segment of the retail industry,” the company said, adding that post the acquisition, Aran Kitchen World India would be a subsidiary of Kreon Financial.
The joint venture partners, however, are yet to decide on details of the dilution of the stake from each parties and the valuation of the stake could be arrived at only after that, officials from both the companies said.
Kreon, which was listed in 1994-95, has around Rs 6-7 crore worth of assets under management and expects to sustain growth in the financing sector.
Meanwhile, Aran Kitchen is looking at the strategic investment from Kreon to increase its capital and to increase the number of stores across the country, said a company official. The company currently operates nine showrooms in different parts of the country.
Aran Kitchen World has announced an equity investment in its erstwhile Indian distributor, Kitchen World India in 2008 by picking up a 49 per cent stake. Subsequently, the name was changed to Aran Kitchen World India Private Limited.
The company closed the last financial year with revenues of Rs 23 crore and expects to touch Rs 30 crore this fiscal, the official said.
Source: Business Standard

Comments are closed.