New Delhi: India’s largest paints company Asian Paints Ltd on Thursday said it has agreed to acquire Sri Lanka’s Causeway Paints Lanka (Pvt.) Ltd in an all-cash deal.

In a stock exchange filing, Asian Paints said its Singapore subsidiary Berger International Pvt. Ltd will make the acquisition. Asian Paints already operates in Sri Lanka through Asian Paints (Lanka) Ltd. The company did not disclose the value of the deal. The acquisition is subject to certain conditions and statutory approvals.

Founded in 1994, Causeway Paints makes decorative and refinish paints for automotive and industrial clients, apart from other products. The company registered net sales of 5,630 million Sri Lankan rupees (Rs253.60 crore) for the financial year 2015-16, up from 4,094.02 million Sri Lankan rupee (about Rs184.42 crore) last year, an increase of 37.5% from the year before.

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Asian Paints operates 26 paint factories in 19 countries. In 2015-16, the company posted net sales of Rs12,545.8 crore, up from Rs11,648.8 crore in the previous financial year.

In 2014, Asian Paints bought the sales business of Punjab-based bathroom fittings and accessories company Ess Ess Bathroom Products Pvt. Ltd. It also bought a majority stake in Ethiopian paint and adhesives maker Kadisco Chemical Industry Plc in the same year. In March 2013, it bought 51% equity stake in Sleek International Pvt. Ltd, a modular kitchen maker.

The Indian paint market is expected to reach Rs70,875 crore by the end of 2019-20 from around Rs40,300 crore in 2014-15, the industry body Indian Paint Association (IPA) said on 6 January.

The decorative paint market is expected to witness compound annual growth rate (CAGR) of 12.7% and the industrial paint market CAGR of 9.5%, IPA said in a release. While the decorative paint market size in the country was Rs30,385 crore, the industrial paint market was Rs9,915 crore in financial year 2014-15, it said.

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