Bajaj Electricals, which makes household and kitchen appliances, said it has agreed to buy non-stick cookware maker Nirlep for Rs 42.50 cr.
The cookware maker had annual turnover of Rs 47 cr as of last financial year, the company said.
“The proposed acquisition will provide a portfolio of products which complements with the offerings of Bajaj Electricals Ltd and is a perfect synergic blend,” the company said.
Bajaj electricals makes items such as fans, blenders, irons, ovens and has also entered into bigger appliances like refrigerators and washing machines.
“The proposed acquisition will make available a running business setup and other synergic benefits to the company,” it said.
“It shall also give the company an exclusive access to Nirlep brand, the state of the art manufacturing facility, people, distribution network, intellectual property rights and goodwill of Nirlep,” it added.
Nirlep is one of India’s oldest consumer brands. It is a pioneer in the field of non-stick cookware.
The company was first to export professional nonstick cookware to Europe, first to manufacture induction compatible nonstick cookware in India, and first to set up a fully automatic nonstick cookware manufacturing plant in India.
However, it has found the going increasingly tough in recent years with the entry of many Indian and multinational brands into the space.
For example, the company saw turnover fall to Rs 47 cr in the year ended March from Rs 54 cr in the previous year and Rs 79 cr in the year before that.
The amalgamation with Bajaj, which has a bigger financial base, is likely to help the brand remain relevant in an increasingly crowded market.