JAPAN'S LIXIL BUYS 70% STAKE IN STAR ALUBUILD FROM DLF UNITS
(The following press release from Lixil Group was received by e-mail. The sender verified the statement.)
For Immediate Release October 8, 2013
LIXIL Corporation StarAlubuild Private Limited
LIXIL- Japan’s Largest Building Products Company, Enhances Focus on the Indian Market Acquires majority stake in Star Alubuild from DLF to further grow the Indian building products market
TOKYO / NEW DELHI, October 8, 2013 –LIXIL Corporation (Headquarters: Tokyo, Japan; President and CEO Yoshiaki Fujimori), today announced that it has acquired a controlling 70% stake in Star Alubuild Private Limited (hereinafter “Star Alubuild”) based in Delhi NCR, India, from subsidiaries of DLF Ltd, India's largest real estate company, majority shareholder and Romi Malhotra, the founder of Star Alubuild. With this acquisition, valuing Star Alubuild at INR 798m enterprise value, LIXIL has made its first major investment in therapidly growing building materials market of India.
Star Alubuild is a leadingIndian curtain wall company, executing projects all over India. It specializes in thedesigning, engineering, fabrication and installation of curtain walls for commercial buildings, retail malls and doors & windows for projects throughoutIndia. Since 2003, the company has been involved in projects in Delhi, Mumbai, Chennai and other metro cities, thereby creating a high quality customer base which includes DLF, IREO, Oberoi and Larsen & Toubro, amongst others.
LIXIL, the largest housing and building materials company in Japan with leadership across eight market categories, is actively building up its manufacturing and marketing capabilities around the world to achieve faster growth. As per its Medium-term Management Visionis targeting sales of JPY 1 trillion annually from its global operations., it assigns top priority to developing the Indian market due to the country's rapid and enormous potential for growth. Through thisacquisition, LIXIL will acquire an established network for the manufacturing and marketing of aluminum sash. In conjunction with its existing sanitary ware brand American Standard, this will further accelerate LIXIL's foray into the Indian market. This transaction seamlessly follows the successful acquisition of American Standard Asia Pacific in 2009, Permasteelisa in Italy in 2011, American Standard Brands in the USA in August 2013, and subject to applicable competition authorities approval, Germany's GROHE Group.
Bill Crichton, COO of LIXIL ASEAN PTE.LTD., said “ I see this strategic acquisition as the first step to developing India's first national aluminium curtain wall and window sash supplier with full capabilities to design, fabricate and install for India's leading developers at a national level. Our aim is to work closely with architects, building designers and developers, to understand their requirements, and then design and build the best quality products using our global expertise, at a very competitive price for the Indian market.”
DLF, after providing key anchor support to Star Alubuild in its initial growth phase, has decided to exit its investment in Star Alubuild as part of its ongoing non-core divestment strategy.
Saurabh Chawla, Executive Director, DLF, commented“We have had a very fruitful relationship with Star Alubuild and wish the company the very best for its next phase of growth. A global player like LIXILacquiring a controlling stake in Star Alubuild demonstrates the confidence in the Indian real estate sector and ancillary industry. We would be delighted to continue our business relationship with Star Alubuild under its new ownership”
Highlights of Star Alubuild’s Acquisition · Acquiring Company: LIXIL ASEAN PTE. LTD. (LIXIL’s wholly-owned subsidiary based in Singapore) LIXIL ASEAN PTE. LTD. acquired controlling stake of 70% from subsidiaries of DLF Ltd and Star Alubuild founder, Romi Malhotra · Share Purchase Agreement Concluded: April 25, 2013 · Management after acquisition: Star Alubuild will continue to be led by its founder and current president, Romi Malhotra. · Financial Advisor to LIXIL: PricewaterhouseCoopers Private Ltd · Financial Advisor to DLF: Ernst & Young Private Ltd
About Star Alubuild Established in 2003, Star Alubuild is one of India’s leading façade design, fabrication and installation service companies, focusing primarily on doors and windows, simple curtain walls and solid surface façades for interiors and exteriors. Led by founder and president, Romi Malhotra, it has serviced an array of projects, ranging from residential to infrastructure, as well as from economy to premium segments, with key clients including DLF, IREO, Oberoi and Larsen & Toubro. Star Alubuild has a 150, 000-square-feet fabrication facilityin Gurgaon just outside Delhi and an additional undeveloped 2.4 acres of land in Chennai as a hub for southern expansion.
Registered Name : Star Alubuild Private Limited President : RomiMalhotra Head Office : 75, Sector 8, Phase IV, IMT Manesar, Gurgaon, Haryana, India (includes factory) Established : February 11, 2003 Number of Shares : 2,281,755 shares (with par value of 10 rupees) Employees : Approx. 517 Sales : INR1,003 million(FY2012 actuals)
About LIXIL Corporation Led by President and CEO Yoshiaki Fujimori, LIXIL Group Corporation (TSE Code: 5938) is a listed holding company posting JPY 1.4 trillion in consolidated sales in FY2012（FY ended March 2013.）The Group engages in a broad spectrum of housing businesses, ranging from the manufacture and sales of building materials and housing equipment to the operation of home centers and a network of homebuilding franchises.
LIXIL Corporation, a subsidiary of LIXIL Group Corporation,is the largest housing and building materials company in Japan with a vast and unique business portfolio. It is a leader in eight market categories, with a 55% share in exteriors, 50% share in housing sashes and doors, 50% share in curtain walls and 40% share in sanitary wares, as well as a well-known brand in tiles, washstand cabinet units, and bathroom and kitchen units.
LIXIL has been active in strategic acquisitions and partnerships in order to fortify and accelerate its growth in foreign markets. It currently operates in more than 30 countries through premium brands offered over a broad product lineup and services. Permasteelia, Gartner and Shanghai Meite, for example, spearhead the project business (building materials and curtain walls), while LIXIL, American Standard Asia Pacific, Inax and Tostem are major players featuring an impressive brand portfolio that includes kitchen units, bathroom fixtures, windows and doors.
Over the past four months, LIXIL has concluded to acquire American Standard Brands, a USA-based kitchen and bath products maker as well as an agreement to acquire GROHE Group, Europe's leading single-brand manufacturer of sanitary fittings, in a move to strengthen LIXIL’s global presence even further.
For more information about LIXIL, please visit http://global.lixil.co.jp/
Contact: Miyuki Otomo LIXIL Corporation-Global Company, PR Team Globalfirstname.lastname@example.org