Nerolac paints to Invest INR 450 crores in Production

Business
Oct 05 2020 03:04 PM
News Track

Nerolac paints to Invest INR 450 crores in Production

Nerolac Paints with its six manufacturing plants at Bawal (Haryana), Jaunpur (UP), Chiplun (Maharashtra), Hosur (TN), Sayaka (Gujarat), Amritsar (Punjab) has proposed its seventh unit in Vishakhapatnam (AP). Due to the Pandemic situation, the seventh unit has been postponed to a year. Kansai Nerolac which has started its operation in September 1920 marked its centenary year. The company is investing INR 450 crores to add 40,000 lakh liters capacity as the company is expecting the demand will grow in double-digits this year. A whopping number of 57% of market share in the automotive paints sector is occupied by Kansai Nerolac and makes it the largest segmental player.

55% of its revenue is fetched by the decorative paints and 45% by the automotive segment. Kansai Nerolac values nearly INR 5000 crore is 75% owned by the world’s eighth-largest player Kansai Paint Co of Japan, privileging 18% of market share and making it the second-largest player in the Indian market. Asian Paints, Nerolac, Berger Paints the top three brands control around 60% of the industry. H M Bharuka, Vice-Chairman and Managing Director of Kansai Nerolac Paints told, “Though we lost the peak demand month of April to the lockdown, sales are almost normal now and plants running at pre-lockdown days now. Given this, I expect to close this year with double-digit growth. Expecting better demand ahead, we are adding 40,000 liters capacity at our Amritsar plant and would be investing Rs 450 crore in CAPEX, most of which will be spent this year”.

The decorative segment drives the demand and is predicting a sharp growth than the anticipated recovery. Also, the industrial sector is showing signs of revival from the month of August. This will improve as the festive season is approaching. Nerolac is the first domestic paint company that launched lead-free paint and anti-fungal bio-wash.