Exit File: Emerging markets Asia

SOMANY CERAMICS

 

Sector: construction

Seller: Creador

Buyer: unnamed domestic institutional investors

Exit value:
3.2 billion rupees
($50 million; €47 million)

Date: April 2017

South-East Asia-focused Creador sold its remaining stake in Somany Ceramics to unnamed domestic institutional investors for 3.2 billion rupees. 

The sale will generate a 5.3x return and an IRR of 77 percent in Indian rupee terms (5x and an IRR of 74 percent in US dollar terms) for investors in Creador’s second fund, which raised $330 million in October 2014.

Somany, listed on the Bombay Stock Exchange and the National Stock Exchange of India, is the country’s second largest tilemaker. Somany sells ceramics, vitrified tiles, sanitaryware and bath fittings through a network of over 10,000 dealers across India.

Creador acquired a 13.6 percent stake in February 2014 for 624 million rupees and offloaded 3 percent of its stake in October 2015 at a 2.9x return.

Somany’s revenue grew from 12.6 billion rupees in 2014 to 17.2 billion rupees in 2017 on an annualised basis, while its net income grew almost threefold in the same period.