Euro Pratik Sales Limited has agreed to acquire a 51 per cent stake in Chawla Brothers for Rs 332 mn, including a capital infusion of Rs 41 mn. The transaction is expected to be completed by March 31, 2026 and will be funded through internal accruals, reflecting a net debt free balance sheet. The business is projected to generate Rs 800 mn in revenue in FY27.

This is the company’s second strategic acquisition in the last four months, following the purchase of URO Veneer World which strengthened presence in the southern market. Together the transactions reflect a focused strategy to expand geographic footprint and deepen presence across India. Management has characterised the move as part of continued evaluation of value accretive growth opportunities.

Chawla Brothers was founded in 1978 and has established distribution across Punjab, Haryana, Jammu and parts of Himachal Pradesh, with strong reach in tier two and tier three cities and towns. The firm operates both wholesale and retail channels and supports a diverse customer base including architects, builders, contractors, original equipment manufacturers and retail consumers. It operates an extensive dealer network of over 450 dealers and maintains warehousing of 50,000 sq. k. from key locations in Jalandhar and Ludhiana.

The integration is expected to accelerate product penetration in underpenetrated regions by leveraging Chawla Brothers’ established dealer network to improve market access across wholesale and retail channels. Management anticipates a gradual replacement of competing products with Euro Pratik’s own offerings, driving higher revenue and market reach. Improved logistics efficiency, existing infrastructure and regional brand equity are expected to support sustainable growth while the company retains a net debt free position. The chairman further indicated that the company will continue to evaluate strategic acquisition opportunities to drive long term shareholder value.