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Ozone Overseas Secures Rs 250 crore from Nuvama PE

Funds will be used to expand Ozone Overseas’ state-of-the-art manufacturing facilities and accelerate growth

Architectural hardware major Ozone Overseas has announced that it has secured an investment of Rs 250 crore from PAG-backed Nuvama Private Equity’s Crossover Opportunities Fund. Ozone will use this investment to bolster growth by expanding its manufacturing capacities, firming up brand presence, strengthening dealer communities, and exploring potential synergistic acquisitions. The investment also reinforces Ozone’s run-up to an eventual IPO going forward.

Set up in 1999, Ozone Overseas has emerged as a significant player with an impressive range of over 5,000 products including glass fittings, shower enclosures, kitchen and furniture fittings, door fittings, railing solutions, fingerprint locks and digital safes. The company claims to have a distribution network of more than 7,000 retailers and a robust after-sales service that solidifies its position as an industry frontrunner.

Ozone will utilise these funds primarily for growth acceleration, says managing director and CEO Alok Aggarwal. “By leveraging this capital, we are well-positioned to accelerate our growth trajectory. Our focus remains on building a consumer-first brand that resonates across touchpoints including franchise outlets, e-commerce platforms, experience centres and retail network. Strengthening our after-sales service and delivering solution-focused products will further enhance our customer experience. As we expand our manufacturing and R&D facilities, we proudly contribute to the Make in India for the world narrative. With our strategic network expansion into Tier 2 and Tier 3 cities, we aim to bring our innovative home and office improvement solutions closer to a wider audience.”

Explaining the rationale for the investment, Nuvama Private Equity’s managing partner Pranav Parikh says, “This investment seamlessly aligns with Crossover’s investment philosophy of backing industry leaders who have a demonstrated track record and exhibit robust growth prospects. The strong momentum in commercial and residential segments is expected to lead the demand for ancillary building and architectural hardware solutions that Ozone Overseas specialises in. The inherent growth in these markets is further enhanced by structural trends such as premiumisation, as well as increased use of modern materials and feature-rich designs, driving up the volume and value of architectural products being used across home and office markets.”

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Nuvama Private Equity is part of the Asset Management business of Nuvama Group, one of India’s leading wealth management firms with client assets of over Rs 2,25,200 crore ($27 billion), servicing around 10,87,564 affluent individuals and HNIs and 2,945 of India’s wealthiest families as of Q4 FY23. PAG, one of the leading alternative investment firms focused on Asia Pacific, holds a majority stake in a partnership with Edelweiss Financial Services Ltd, one of India’s leading diversified financial services companies, to form Nuvama Wealth Management Ltd.

The Crossover Opportunities Fund, according to the website, states that with its late-stage PE/pre-IPO approach it will work with top-tier entrepreneurs and management teams to help them transition from privately owned firms to high-performing, long-lasting public franchises. 

The Fund’s management team thinks that late-stage private equity investors have a particular edge in terms of timing, precisely as a company’s potential is about to be unlocked. The Crossover fund comes into play when several PE exits and liquidity for the promoter family are required. To generate optimum profits, the Fund focuses on mass-market companies with scalability and visible space for development.

According to Parikh, “Unlike other home improvement categories, this space is still highly fragmented, with a large share being catered by unorganised players. We see an increasing shift from unorganised to organised and expect consolidation of market share among a few large players over the next decade.  In our view, Ozone Overseas, given its brand, market reputation, omnichannel approach and high-quality management team, is very well-positioned to take a disproportionate share of this opportunity.”

Parish acknowledges that Ozone’s extensive network of retailers, robust global supply chain, sophisticated logistics network, and technical support and product development enterprise, together have contributed to solidifying its position as a credible Indian brand worldwide. Over the last two decades, the company has created a footprint across the USA, Germany, Turkey, Italy, UAE, and other countries, besides its home base in India.

Agrawal believes that Ozone has contributed significantly to the Make in India mission with its homegrown solutions. “We have also brought consistency in development to major cities across India with our innovative products and categories, which have often been the front runners in the market. For our next phase of growth, we will be focusing on expanding our base in Tier 2 and Tier 3 cities. We will bring to these customers end-to-end residential and commercial solutions that will further strengthen India’s national stance in global markets.”

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