France's BIC acquires 40% in India's Cello Pens for US$160 mln

23-Jan-09

With a view to extend its footprint into Rs. 2000 cr Indian stationary items market, BIC - France's stationary products manufacturer - has paid US$160 mln (approx. Rs 800 cr) to acquired 40% stake in India's Cello Pens. According to senior sources at Cello, the deal will assist the leading Indian stationary products maker to spread out its worldwide distribution chain while giving French pen maker access to massive Indian market. According to the deal, by 2013 BIC will have an option to raise its stake further by 15% in the Indian firm with revenues of Rs.450 cr and Indian market share in excess of 35%. Globally, Cello has footprint in more than 35 countries with sales accounting for more than 4 mln pens per annum; though more than 80% is sold in India. BIC - made a post-1990 entry into the Asian market - is one of the biggest suppliers and makers of stationery items in France with majority presence in Europe and the US.