Kansai Nerolac Paints Limited has announced the approval of the amalgamation of Nerofix Private Limited with Kansai Nerolac, effective April 1, 2025. This strategic move aims to consolidate the businesses of Nerofix and Nerolac, promoting synergy, economies of scale, and unified growth. The amalgamation will result in streamlined operations, reduced administrative costs, and enhanced efficiency for the combined entity, reinforcing Kansai Nerolac’s market position.
Amalgamation Details
The Scheme of Amalgamation for the merger of Nerofix Private Limited with Kansai Nerolac Paints Limited has been approved. The appointed date for the amalgamation is April 1, 2025. This will consolidate the operations of both entities into a single, integrated unit.
Rationale and Benefits
The amalgamation is expected to yield significant benefits, including:
- Synergy and economies of scale.
- Unified growth and expansion opportunities.
- Integration of business operations.
- Reduction of overlapping costs.
- Enhanced administrative convenience and organizational efficiency.
The Board of Directors of Kansai Nerolac believes that the amalgamation will strengthen market presence and ensure long-term sustainable growth.
Financial Impact
As Nerofix is a wholly-owned subsidiary of Nerolac, the paid-up equity share capital of Nerofix will be canceled, with no new shares of Nerolac being issued. Nerolac will integrate Nerofix’s assets and liabilities, with inter-company balances being eliminated. Nerolac’s financial statements will be adjusted accordingly, reflecting the combined entity’s performance.
Operational Changes
Following the effective date, all employees of Nerofix will become employees of Kansai Nerolac on terms no less favorable than their existing conditions. Nerolac will continue to operate existing Bank accounts to ensure a smooth transition.
Financial Data Highlights (as of September 30, 2025)
Nerofix:
- Revenue from Operations: ₹7,664.45 Lakhs
- Loss Before Tax: ₹(365.25) Lakhs
Kansai Nerolac:
- Total Assets: ₹8,271.37 Crores
- Equity Share Capital: ₹80.85 Crores
Source: BSE
