Building and furniture materials supplier Sumitomo has paid $14m for a 26% stake in India-based home and office furniture maker Spacewood, the Economic Times reported yesterday.
The stake purchase is expected to give Japan-based Sumitomo Forestry access to the Indian market, which has so far remained largely under the control of domestic businesses.
The two companies intend to jointly open a factory to manufacture pre-hung doors which will be sold through an as yet undisclosed new brand. Spacewood plans to also use the cash to increase its retail stores to a total of 50 over the next three years.
Spacewood produces modular furniture for kitchens, the home and the office. The company claims to produce some 100,000 kitchen cabinets, 30,000 bedroom sets and 50,000 desks each year.
Itaru Ozaki, general manager of Sumitomo Forestry, said: “India has become a very important strategic market for us and we will continue to invest and look for opportunities here.”