French stationary major BIC Group increased its shareholding Cello pen, a writing instrument business of cello group to 100% for Rs 540 crore. Cello Currently, BIC has 55% ownership in the Cello, the largest manufacturer and distributor of writing instruments in the country.

This acquisition will help to accelerate Cello Pens growth in India and support its integration within the BIC Stationery Category, with a focus on investing in local manufacturing, safety, and quality, BIC said in a statement.

India is one of the largest and fastest growing stationery markets in the world, driven by increasing consumer purchasing power and literacy rate. Founded in 1995, Cello Pens is the country's largest manufacturer and distributor of Writing Instruments benefiting from a broad portfolio of quality products and a countrywide, as well as international, distribution network.

Bruno Bich, BIC Chairman of the Board said: "Moving to 100% ownership in Cello Pens is an opportunity to reinforce our position as India's number 1 Writing Instrument brand and to further BIC's development in Asia. We are confident in Cello Pens' multicultural management team's abilities to leverage the strong asset that is the Cello brand, driving toward strong mid and long term growth potential".

BIC with a net sales of nearly 1.98 billion euro in 2014 is a world leader in stationery, lighters, shavers and promotional products. BIC products are sold in more than 160 countries around the world.

Bic had entered into agreement in 2009 to acquire 40% stake in Cello pen for Rs 740 crore. The deal was caught into legal fight between Cello group and BIC as Indian sellers wanted to renege the deal.

However, in 2013, BIC acquired the 40% stake for Rs 740 crore which as subsequently increased to 55% for Rs 380 crore, in accordance the price formula agreed upon at the time of initial agreement.