Asian Granito Expands into the UK Market with Strategic Joint Venture

Asian Granito India Limited (AGIL) has entered into a Joint Venture Agreement (JVA) with Shudh Investments Limited and Klyn Stone Limited, two UK-based entities. This agreement establishes Klyn AGL Limited, a Joint Venture Company (JVC) incorporated in England & Wales. The primary objective of the JVC is to engage in the trading business of large porcelain slabs, all types of tiles, and quartz products across the United Kingdom.

A “Confirmation Statement” regarding the share ownership and capital structure of Klyn AGL Limited was submitted to Companies House in England & Wales. This document inducted AGIL as a shareholder in the JVC. The confirmation was officially accepted, and AGIL received approval on December 9, 2024.

Purpose of the Joint Venture

The joint venture aims to tap into the growing demand for premium construction materials in the UK. By combining the expertise of AGIL and the UK entities, the JVC will focus on trading and promoting large porcelain slabs, diverse types of tiles, and quartz products.

Significant Terms of the Agreement

1. Board Representation:
   AGIL and the UK entities each have the right to appoint two directors to the Board of Klyn AGL Limited, ensuring balanced decision-making.
2. Fresh Issue of Share Capital:
   The agreement includes provisions for additional issuance of securities. Both AGIL and the UK entities will subscribe to these new shares in proportion to their current shareholding.
3. Capital Structure Restrictions:
   All parties hold the right to subscribe to any future share issuance in the ratio of their existing ownership, thereby restricting unauthorised changes in the JVC’s capital structure.

A total of 2,50,000 ordinary shares will be issued at a face value of GBP 1 per share to AGIL and the UK entities. This equitable distribution of shares establishes a strong foundation for the joint venture’s future growth.

On December 11, 2024, Asian Granito India share price opened at ₹71.14, touching the day’s high at ₹77.39, as of 10:08 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.