In February 2000, Kansai Paint Co. Ltd., Japan, the company’s foreign collaborator and one of the promoters of the company, acquired 43,71,152 shares amounting to 28.56% of the paid-up share capital of the company from Forbes Gokak Ltd. and their associates, the other promoter of the company, at a price of Rs.250 per share. With this acquisition Kansai Paint Co., Japan, was now holding 64.52% of the paid up share capital of the company. Share holding increased to 69%, post the merger of Polycoat Powders Ltd., a wholly owned subsidiary of Kansai Paint Co., Japan, with Kansai Nerolac Paints Limited. With subsequent acquisition of shares of our Company from the open market, Kansai Paint Co. Japan now holds 74.22% of the paid-up share capital in our Company, as on August 31, 2016. The coatings industry globally, like several other industries, is in the process of consolidation. The process of consolidation is intended to help companies meet increasingly challenging customer requirements by constantly updating technology, striving for greater efficiency in operations and ensuring worldwide servicing capabilities.
World over, units are moving with associates/affiliates/parent bodies with core competence as their prime objective. The acquisition by Kansai of the shareholding of Forbes Gokak Ltd. and their associates in your company is in furtherance thereof.