Calcutta, Sept. 11: Asian Paints today said its subsidiary in Fiji, Asian Paints (South Pacific) had acquired Taubmans Paints (Fiji) Ltd for $ 1.42 million (Rs 6.5 crore) from Akzo Nobel and a local partner.

Asian Paints said the acquisition would be funded entirely out of internal accruals of its subsidiary in Fiji, and include Taubmans’ paints business in the neighbouring Samoa Islands as well.

Akzo Nobel, the world’s largest paints company held 65 per cent in Taubmans. Fijian Holdings, a local partner, held the balance 35 per cent. Asian Paints will be buying out both companies’ stake in Taubmans — the fourth largest paints company there.

“This is an effort to further consolidate our leadership in Fiji and also strengthen our presence in the South Pacific region. Taubmans’ operations, product range and segments it operates in are complimentary to our existing operations in Fiji. This will enable us to derive numerous synergies from this acquisition,” said Ashwin Dani, vice-chairman and managing director of Asian Paints.

Taubmans’ brands are popular in the premium decorative segment. It earned $ 2 million in annual revenues in 2002. It is a profitable company with a 10 per cent profit margin. It has two manufacturing facilities, one in Fiji and the other in Samoa Islands.

Fiji was Asian Paints’ first overseas venture. After 25 years of operation, it has a leadership position with a 40 per share of the Fijian market. Asian Paints has a plant in Fiji that can produce up to 2,500 tonnes per year. The company also operates in neighbouring Vanuatu, Solomon Islands and Tonga.

Asian Paints sells its entire global range of brands — Royale, Apcolite, Decora, Decotrade, Touchwood, Metacare, Autocare and Transocean marine paints — in Fiji and the neighbouring islands.