Carlyle to purchase minority stake in bathware firm Varmora for $100 million

The Carlyle Group has agreed to amass a big minority stake in Ahmedabad-based tile and bathware firm Varmora Granito, because the US non-public fairness investor expects a brand-cautious Indian shopper to spend large on residential modifications. Though phrases of the transaction weren’t disclosed, folks near the event instructed ET that Carlyle can be investing about $100 million within the privately held firm.

Fairness for this transaction will come from funds managed and suggested by entities affiliated with Carlyle Asia Companions Progress, a information launch mentioned.

Established in 1994, Varmora is a founder-led firm. It goals to leverage the partnership with Carlyle to boost its investments in model constructing and digital advertising, deepen its distribution community, and increase product innovation and capability, the information launch mentioned.

Carlyle believes a optimistic outlook for the residential sector, together with rising per-capita earnings in India and product premiumisation, supplies important development alternatives for a branded building-materials shopper participant similar to Varmora, it mentioned.

“We imagine that is pushed by a differentiated product portfolio, sturdy pan-India distribution community and an distinctive administration workforce. We additionally view Varmora as a platform for consolidation within the fast-growing constructing supplies house,” mentioned Amit Jain, managing director and co-head, Carlyle India Advisors.