Date:18/08/2006 URL: http://www.thehindubusinessline.com/2006/08/18/stories/2006081802550300.htm

Back Nippon Paint plans new manufacturing units by 2008

Our Bureau

Hyderabad , Aug. 17

Nippon Paint of Japan, which launched its India operations from Chennai last month, would go pan-India after it readies manufacturing facilities in the first quarter of 2008.

On the eve of its foray into the paint market in Hyderabad, Mr Ramakanth V. Akula, Vice-President (Decoratives) of Nippon Paint India, said, "We will go to Kerala and Karnataka next."

Addressing a press conference here , he said the company would commence two manufacturing facilities, one each in Gurgaon and Chennai, early in 2008. It would spend Rs 160 crore on the facilities, each having a capacity of 20,000 tonnes (and with a scope for upscaling to 40,000 tonnes).

Stating that the company would first focus on the Southern markets, he said it would import products initially from group companies outside India. Mr Ramakanth said the Rs 9,000-crore paint market offered great opportunity. While the organised market comprised 70 per cent of the total paint market, decoratives held a maximum share of 75 per cent (Rs 4,725 crore).

He said the company would change the way customers chose the paints of their liking. "Our stores offer professional help and consultancy services to customers, besides providing them with a nice retail experience," he said.

Mr W.M. Yip, Managing Director, said the company would first offer products in the decorative range. "We will soon introduce more of our other products," he said.