Global private equity investor Warburg Pincus LLC has acquired a majority stake in Mumbai-based furniture hardware maker Ebco, highlighting the growing potential of the furniture market in India.

The global investor will acquire 75-80% of Ebco at a valuation of Rs 3,000 crore, according to a source close to the deal.

The promoters, Geoffrey Nagpal and his family, will also continue with a substantial minority stakeholding and remain involved actively in the operations of the business post-acquisition, said Ebco.

Avendus Capital was the exclusive financial advisor for Ebco in the deal. Ebco is expanding production with three new manufacturing plants and is considering a fourth plant soon.

According to reports, PE funds KKR, Kedaara Capital, and TPG were also competing for a controlling stake in Ebco in a deal worth over $300 million.

PE interest in Ebco is driven by the expected 13.37% compounded growth in India’s furniture market, which is projected to reach $37.7 billion by 2025-26, up from $17.4 billion in 2020-21, according to Invest India. The furniture fittings industry will benefit directly from this growth.

According to Anish Saraf, the Managing Director of Warburg Pincus India, the industry for Indian furniture fittings and architectural hardware is expected to see high growth due to favourable demographics, increased real estate demand, the trend of modular furniture, and a rising number of home renovations.

The company’s revenues were Rs 791 crore for 2022-23 and are intended to remain between Rs 830 crore and Rs 870 crore for 2024, according to a Crisil report dated March 12th.

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