Kansai Nerolac is looking to triple Perma Construction Aids' revenues to Rs 100 crore in three years , said HM Bharuka, managing director of the company. The current turnover is about Rs 28 crore, he said.
The stock was trading higher by more than a percent on Friday after the company agreed to acquire 100 percent equity stake in Perma Construction Aids for Rs 29 crore.
The acquisition is into niche products, said Bharuka. "Currently, the acquired company is concentrated in western region and so the aim is to scale it up to other markets and higher levels in next 2-3 years," he said.
He said the current margins of Perma are around 7 percent which will improve going forward.
When asked if the company stands to benefit from lower crude prices, Bharuka said, "In the last many months when the crude prices were high and currency had depreciated there was an increase in costs of 15-18 percent, which we were unable to pass on and so the reduced prices are not of much help. Secondly, reduction in crude prices has not yet been transferred to the raw material prices."