Whalesbook
Jaquar and Company Pvt Ltd has acquired Euro Ceramics Ltd for ₹42.90 crore. The National Company Law Tribunal (NCLT) Mumbai confirmed the deal, allowing Euro Ceramics to continue operations and extinguishing all prior liabilities.
The NCLT Confirmation
The NCLT Mumbai has officially sanctioned Jaquar and Company Pvt Ltd's acquisition of Euro Ceramics Ltd. Jaquar emerged as the successful bidder in an e-auction with a ₹42.90 crore payment.
This confirmation order grants Euro Ceramics a clean slate. All previous liabilities, debts, and encumbrances predating the confirmation are now extinguished. Pending legal suits, arbitral proceedings, and inquiries related to claims against Euro Ceramics before this date will also be abated or withdrawn.
Significance of the Deal
This acquisition marks a crucial turning point for Euro Ceramics, concluding its liquidation process and enabling it to resume operations under new management. For Jaquar, it represents a strategic move to integrate a manufacturing entity into its broader portfolio.
By extinguishing past liabilities, the deal significantly de-risks the acquisition for Jaquar, clearing a path for operational restructuring and future growth without the burden of old debts.
Euro Ceramics' History
Euro Ceramics Ltd, a manufacturer of vitrified tiles and sanitaryware, had been in liquidation proceedings under the Insolvency and Bankruptcy Code (IBC) since September 2023. In 2017, Jaquar Group had previously acquired Euro Ceramics' sanitaryware manufacturing plant for ₹100 crore, indicating earlier financial challenges for Euro Ceramics.
Jaquar and Company Pvt Ltd, established in 1960, is a prominent name in bathroom and lighting solutions with an extensive product range and global presence. The company has a history of strategic acquisitions, including a stake in a South Korean firm.
Key Changes Post-Acquisition
- Debt-Free Status: Euro Ceramics Ltd will operate free from its historical debts and liabilities.
- Operational Continuity: As a 'going concern,' the business is expected to continue operations under Jaquar's management.
- Asset Transfer: Jaquar now owns all Euro Ceramics assets, excluding avoidance transactions and bank accounts.
- Regulatory Status: The corporate debtor's status will shift from 'under liquidation' to 'active' with regulatory bodies.
- Legal Resolution: All prior legal proceedings against Euro Ceramics will be abated, providing a clean slate for future operations.
Potential Risks
The sale was conducted on an 'as is, where is' basis. This means Jaquar has acquired the assets in their current condition, following its due diligence.
The completion of the liquidation closure process might still depend on resolving other pending litigations. The liquidation period itself had been extended previously.
Market Landscape
In the tile manufacturing sector, Euro Ceramics' former peers include industry leaders like Kajaria Ceramics and Somany Ceramics, known for their extensive product portfolios and market presence.
For Jaquar, a leader in sanitaryware and bath fittings, key competitors include Cera Sanitaryware and HSIL (Hindware), companies also competing in the bathroom solutions space.
Acquisition Details
The acquisition was finalized for a bid amount of ₹42.90 crore. This transaction occurred within the fiscal year 2025-26.
Future Tracking Points
Key developments to monitor include:
- The filing of a rejoinder for IA(I.B.C)/2848(MB)2025 within the next two weeks.
- The listing of IA(I.B.C)/2848(MB)2025, scheduled for September 15, 2025.
- Completion of procedural formalities for Jaquar and Company Pvt Ltd's transfer and operational takeover.