Financial News

RPM increases minority interest in Indian composites company

June 16, 2011

RPM International Inc. has agreed to increase its minority ownership interest in Kemrock Industries and Exports Ltd., a fully integrated fiberglass reinforced plastic composites manufacturer with more than $200 million in annual sales located in Vadodara, Gujarat State, India, from aRPM International Inc. has agreed to increase its minority ownership interest in Kemrock Industries and Exports Ltd., a fully integrated fiberglass reinforced plastic composites manufacturer with more than $200 million in annual sales located in Vadodara, Gujarat State, India, from approximately 14.9 percent to 15.1 percent. As a result of this agreement to increase its ownership interest above 15 percent, RPM is required under Indian law to commence a public offer for up to an additional 20 percent of the outstanding shares of Kemrock.  


RPM’s increased ownership of Kemrock signals its continued support and confidence in the company and its management, led by Kemrock’s founder and managing director, Kalpesh Patel, and further solidifies RPM’s position as a long-term investor in Kemrock.  


“We’ve had a long-standing partnership with RPM and we welcome this additional investment as a means to further our business relationship,” said Patel.


Traded on the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd., Kemrock is India’s largest composite exporter, with its products sold in more than 50 countries worldwide. It manufactures pultruded profiles; gratings; windmill blades; thermosetting resins; rail coach interiors and exteriors; cable management, piping and access systems; lighting poles and carbon fiber.


“As we envisioned when we made our initial investment in Kemrock in 2006, it has been a key strategic business partner for RPM in India,” said Frank Sullivan, RPM chairman and chief executive. “Kemrock has provided us with a platform that we have leveraged to increase our presence in the rapidly growing Indian marketplace and vibrant Asia-Pacific region. We expect that this relationship will only continue to flourish.”

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