JAT Holdings sets sights on Australia and India after Mirotone acquisition

By Nishel Fernando 

New Zealand High Commissioner David Pine	JAT Holdings Managing Director Aelian Gunawardena Pic by Nimalsiri Edirisinghe

JAT Holdings PLC has unveiled an ambitious post-acquisition strategy focused on an aggressive Australian relaunch and a landmark entry into the Indian market, following its acquisition of Mirotone (NZ) Limited. 

The move, described by company leadership as transforming JAT into a “truly international coatings company,” leverages the newly acquired 90-year-old brand to penetrate developed markets previously considered barriers to the Sri Lankan firm.

The acquisition, finalised on October 31, 2025, by JAT’s subsidiary JAT Exports DMCC, involved a total strategic investment exceeding AUD 4 million. This sum includes AUD 2.5 Million for 100 percent ownership of Mirotone (NZ) Limited and its intellectual property, with an additional AUD 1.5 million committed as a working capital infusion.

This new capital is earmarked for modernising Mirotone’s New Zealand manufacturing operations and, crucially, funding the relaunch of its legacy brand in the Australian market. The deal was financed through a mix of 70 percent debt and 30 percent self-generated funds, with JAT’s gearing expected to see a minimal increase from approximately 20 percent to 22 percent.

The post-acquisition plan targets a threefold increase in Mirotone’s turnover, from a current NZD 7.9 million to a projected NZD 23.1 million by the 2027/28 financial year. A significant driver of this growth is the strategic relaunch into Australia, which is forecast to contribute NZD 8.0 million in new revenue. JAT’s leadership is confident in this move, citing Mirotone’s strong “top of the mind recall” in a market where it was once a dominant player with a USD 60 million turnover.

The economic impact of this acquisition extends beyond JAT’s corporate boundaries, representing the most significant Sri Lankan investment in New Zealand to date, as acknowledged by New Zealand High Commissioner David Pine. 

This investment demonstrates JAT’s commitment to preserving and growing established international brands, creating employment opportunities in both countries, facilitating technology transfer and innovation sharing, and strengthening bilateral business partnerships between Sri Lanka and New Zealand. 

The manufacturing and supply chain integration will enhance JAT’s existing footprint by adding New Zealand’s manufacturing plant to their current facilities in Sri Lanka and Bangladesh, creating synergies through centralized procurement, consolidated production for specific market segments, and significant cost benefits through economies of scale.

A second key growth pillar is the expansion into New Zealand’s retail and exterior wood coating sector, a market JAT CEO Nishal Ferdinando described as “as big as the total industrial market” there. JAT plans to leverage its own expertise as the “king of water-based” coatings to capture this new segment, projecting it will add NZD 3.1 million in turnover.

JAT aims to dramatically improve Mirotone’s profitability, forecasting a gross profit margin increase from 42 percent to 59 percent and a profit after tax (PAT) margin jump from 3 percent to 16 percemt. This will be achieved by integrating JAT’s existing backward vertical integration, including supplying materials from its acrylic binder plant in Sri Lanka and its alkyd resin plant in Bangladesh.

The company also plans to capture synergies through centralized R&D and support services, projecting a 15-fold increase in Mirotone’s absolute profitability within two and a half years.

However, the “dark force” in JAT’s projections, according to its CEO, is India. Leadership noted that attempts to enter the Indian market as a Sri Lankan company had previously been a barrier. The new strategy is to use the 90-year-old, Australian-heritage Mirotone brand to overcome this “so-called perception”. 

Ferdinando stated that capturing “even 1 percent or 2 percent market share” in India “can really change the dynamics” of the entire group, emphasising that these significant potential gains are not yet factored into the company’s public forecasts.

This acquisition is the central pillar of JAT’s plan to dramatically reshape its financial profile. The company projects its group topline will see 106 percent growth from its current Rs. 12 billion base, with the group’s bottom line growing by 71 percent from its Rs. 1.8 billion PAT recorded in the 2024/25 annual report. This strategy is forecasted to shift JAT’s revenue mix, increasing international revenue from 30 percent to 50 percent of its total turnover and growing revenue generated from its own brands from 40 percent to 70 percent. 

This expansion, which also includes plans for markets in Europe and the Americas, is set to grow JAT’s presence from eight countries on two continents to over 20 countries across five by 2028.