Asian Paints White Teak acquisition marks a major milestone: on June 27, 2025, Asian Paints finalized plans to acquire the remaining 40% equity stake in Obgenix Software (White Teak) for ₹188 crore, making it a fully owned subsidiary
🚀 Why this acquisition matters
- Full control of brand: Asian Paints completed the last stage of its phased acquisition strategy, first buying 49% in April 2022 and 11% in June 2023, leading to 100% ownership
- Strategic expansion: White Teak’s strong position in luxury lighting and premium home décor aligns with Asian Paints’ push into comprehensive home‑improvement offerings, complementing its core paint business.
- Financial impact: The ₹188 crore outlay was a planned final tranche in the multiyear deal. Post-acquisition, White Teak becomes a wholly‑owned subsidiary
🏷 Acquisition timeline at a glance
| Date | Stake Acquired | Price / Value |
|---|---|---|
| Apr 2022 | 49% | ₹180 Crore + earn‑out ₹114 Cr |
| Jun 2023 | 11% | ₹54 Crore + earn‑out ₹59.5 Cr |
| Jun 27 2025 | 40% | ₹188 Crore |
🔍 Business rationale
White Teak — founded in 2016 by Pawan and Gagan Mehta — has grown rapidly, with ₹108.5 crore in revenue in FY 2023. Its high‑end decorative lighting and designer fans seamlessly fit into Asian Paints’ broader “Beautiful Homes” and interior décor strategy.
Asian Paints, India’s largest paint maker, has pivoted progressively into home décor (bath fittings, kitchens, lighting) to diversify its footprint — with White Teak now at the forefront of this shift
📈 Market & Stock Reaction
The ₹188 crore buyout was announced post-market on June 27, triggering a ~3 % rally in Asian Paints stocks to ₹2,359.25 by close of trade, reflecting investor approval livemint
🔮 What it means going forward
- One‑stop home décor shop: Asian Paints can now offer everything under one roof — from paints to luxury lighting.
- Upscaling e-commerce: White Teak’s digital-first retail model will merge with Asian Paints’ omnichannel systems, enhancing online sales potential.
- Growth runway: With full control, Asian Paints can optimize White Teak’s expansion faster and more aggressively.
✅ Conclusion
The Asian Paints White Teak acquisition sets a new chapter in the company’s diversification strategy. By fully absorbing a premier lighting brand, Asian Paints strengthens its value chain and cements its ambition to be India’s leading home-improvement brand.
