French pen and stationery manufacturer BIC has picked up a 40 per cent stake in Mumbai-based stationery products maker Cello Pens. The deal, worth Rs 8 billion, also allows the former to increase its stake to 55 per cent in the later, suggested media reports.
The deal will enable Cello Pens to expand its existing global distribution network and give BIC a foothold in the Rs 20-billion Indian stationery market. The alliance will allow the companies to jointly forge a marketing and research strategy for Cello.
The 12-year-old Cello claims to have revenues of Rs 45 billion, with a 37 per cent share of the domestic market. The company, which has a presence in over 35 countries, sells over 4.2 million pens annually, of which 85 per cent is sold locally.
— IndiaRetailing Bureau