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Carlyle announces minority investment in tile brand Vermora Granito

The strategic investment is a bet on the residential sector and the rising per capita incomes of India.

June 28, 2022 / 03:07 PM IST
Representational image

Representational image

Global investment firm Carlyle announced on June 28 the acquisition of a minority stake in Indian tile and bathware company Varmora Granito Pvt Ltd, in a bet on the country's residential sector. 

Carlyle, an investor in various companies in the retail and consumer sectors, views the investment as a strategic bet on the rising per capita income of the country and the growth opportunities in the consumer and building materials segments, according to a press release.

“We are very impressed by the brand salience and consumer pull that Varmora has created. We believe this is driven by a differentiated  product  portfolio,  strong  pan-India  distribution  network  and  an  exceptional management team,” said Amit Jain, MD Carlyle India Advisors. Carlyle also views the Varmora deal as "a platform for consolidation in

the fast-growing building materials space,” he added.

Varmora aims to drive the funds from the sale into product development and marketing initiatives. "We are very excited and confident about the growth opportunity that lies ahead for Varmora and are looking forward to leveraging Carlyle’s global consumer expertise for executing our value creation initiatives," said Bhavesh Vermora, Chairman Varmora Granito Pvt Ltd. 

Details of the transaction were not disclosed. The sale is expected to got through in Q2 FY23. Investment bank Steer Advisors served as transaction advisor to Varmora.
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