Fenesta, the windows and doors business of DCM Shriram Ltd, has taken a big step to boost its supply chain by acquiring a 53% equity stake in DNV Global. The deal is worth Rs 44 crore and is aimed at strengthening backward integration and entering the hardware segment more actively. The acquisition is part of Fenesta’s larger plan to grow its operations and make its products more reliable and innovative.
Out of the total Rs 44 crore, Rs 31 crore will be invested in new equity shares, while Rs 13 crore will go towards buying existing shares from current stakeholders. The full transaction is expected to be completed within the next two months. This investment is expected to give Fenesta better control over the quality of its hardware and help it reduce dependency on outside suppliers.
Fenesta Vision For Growth
In a company statement, DCM Shriram said that this investment supports Fenesta’s aim of improving customer satisfaction, increasing vertical integration, and achieving better operational efficiency. The goal is also to grow faster and make smarter use of the supply chain network. With this move, Fenesta aims to control more stages of its production, which will help in ensuring product quality and quicker delivery.
Hardware is a key component in making window and door systems last longer and perform better. By bringing hardware manufacturing in-house, Fenesta will be able to focus more on innovation and quality control. DNV Global, the company it has acquired a majority stake in, was founded in 2013 and had a turnover of Rs 60 crore in the last financial year. This acquisition gives Fenesta access to DNV’s manufacturing capabilities.
Leadership on Integration
Saket Jain, Business Head at Fenesta Building Systems, called the acquisition a natural fit with the company’s long-term goals. He said that hardware plays an important role in user experience and system performance. The partnership will give Fenesta more flexibility in product development and a stronger position in the home improvement market. Jain also said that this step will help the company offer more durable and smarter solutions to its customers.
Fenesta is already a leading name in India’s premium home improvement sector. It manufactures uPVC and aluminium windows and doors, as well as solid panel doors and facades. With this acquisition, the company is expected to improve its product offerings and gain a competitive edge in the fast-growing market. Its parent company, DCM Shriram Ltd, has a strong presence in multiple industries including fertilizers, sugar, and chemicals.
