Carlyle The group has agreed to acquire a significant minority stake Ahmedabad based tile and bathware company vermora As a US private equity investor, Granito expects a brand-conscious Indian consumer to spend big on residential modifications. Although the terms of the transaction were not disclosed, people close to the development told ET that Carlyle will invest about $100 million in the privately held company.

The equity for this transaction will come from funds managed and advised by the affiliated entities. Carlyle Asia Partners Growth, said in a news release.

Established in 1994, Varmora is a founder-led company. It aims to leverage partnerships with Carlyle to increase its investments in brand building and digital marketing, deepen its distribution network, and drive product innovation and efficiencies, the news release said.

Carlyle believes that a positive outlook for the residential sector, coupled with increased per capita income and product premiumization in India, offers significant growth opportunities for a branded building-materials consumer player like Vermora, it said. .

“We believe this is driven by a differentiated product portfolio, strong pan-India distribution network and an exceptional management team. We consider Varmora to be one of the fastest growing construction materials companies in the world,” said Amit Jain, Managing Director and Co-Head, Carlyle India Advisors. The sector is also seen as a platform for consolidation.