Nippon paint plans new manufacturing units

Hyderabad, Aug 17: International paint major Nippon Paint plans to invest Rs 160 crore to start manufacturing units at Gurgaon in Haryana and Chennai in Tamil Nadu by 2008 as it was eyeing the Rs 4270 crore decorative paint market with its pan-Indian network.

Nippon Paints (India) Pvt Ltd Managing Director W M Yip, on the eve of its foray into the Rs 130 crore paint market in Hyderabad, told mediapersons that by the first quarter of 2008 both facilities, each with production of 20,000 tonne a day, would commence production providing the company an all India footprint.

Till then, the company would supply its Indian consumers paint imported from its plants in China, Hong Kong, Malaysia and Japan.

Through its exclusive, ten retail outlets in Hyderabad and moving into other cities and towns of Andhra Pradesh next month, the company expected to generate Rs 10 crore business in the exclusive mid and premium segment over the next two years. The exterior emulsion markets of AP was Rs 45 crore.

Launching its operation in India at Chennai on July 27 this year, the company was planning to move its focus into South India. Its plans to move into Kerala next month and Karnataka by October was aimed at picking up a five to 10 per cent market share in the Rs 1200 crore plant market in South India. Of this, Rs 300 crore was for mid and premium brands.

Claiming that it had introduced for 'the first time in India' anti-bacterial paint, which enabled coats to last longer, the company said it also introduced Aerosol Spray Paint for the first time.

Vice-President (Decorative) Ramakanth Akula said the company would launch its products in Hyderabad tomorrow and expand through a set of exclusive retail chain. It was eyeing automotive, auto finish, marine industrial and road marking segments along with decoratives to catch up with the increasing developments in housing and infrasructure.

UNI