Indian furniture hardware company Ebco has sold a majority stake to private equity (PE) giant Warburg Pincus.
The promoters will retain a significant minority stake in Ebco and will be actively involved in the future growth of the business, the company said in a statement.
Founded in 1963, Ebco is one of India’s oldest and most prominent furniture fittings and architectural hardware brands.
Based in Mumbai, the company offers a wide range of products with over 4,500 SKUs across categories spanning bed and wardrobe fittings, kitchen systems and accessories, office furniture fittings, window and door hardware, and furniture lights.
Ebco, which claims to be a market leader in India, has an extensive distribution network with 5,500+ retail touchpoints across the country and operates three state-of-the-art manufacturing plants in Maharashtra with robust R&D and design capabilities. It has also built a distribution network in the international market.
“The company is at an exciting phase of growth,” said Geoffrey Nagpal, Managing Director, Ebco.
“This partnership [with Warburg] will enable the company to capitalise on the strong industry growth prospects, deepen its presence in every part of the country, and grow as a manufacturing powerhouse supporting the government’s ‘Make in India’ initiative,” he added.
Avendus Capital was the exclusive financial advisor to Ebco.
“We believe that the Indian furniture fittings and architectural hardware industry is poised for significant growth over the next several years, underpinned by tailwinds from favourable demographics fuelling real estate demand, rising furniture modularisation, and increasing home renovations. Ebco has been a pioneer in this industry with its innovative, functional, and high-quality products,” said Anish Saraf, Managing Director, Warburg Pincus India.
DealStretAsia had earlier reported about Ebco’s fundraising plans but at that time Multiples PE was in the fray to pick up a stake in the company.
At that time industry sources close to Ebco had said that the funding round could peg its valuation at about $450-500 million, adding that the firm clocked revenues worth over Rs 790 crore in financial year 2023. However, the numbers could not be independently verified.
Warburg Pincus is a leading global growth investor. It has more than $83 billion in assets under management and its active portfolio spans over 225 companies across geographies.
Headquartered in New York, Warburg Pincus’s India portfolio includes Ola, Good Glamm, and Parksons Packaging, among others.
