Mumbai: India’s no.2 paints maker Kansai Nerolac Paints expects an 18-20% rise in sales in the current fiscal, a top official told reporters on Monday.
The firm’s turnover in FY10 was Rs1,970 crore. “The economy is expected to grow in double digits and hence we see substantial rise in sales across the country,” H M Bharuka, managing director, said on Monday.
The paints maker said it does not have plans to raise product prices until October-end, but admitted that rising prices of titanium dioxide, a key raw material, is building up pressure.
“Due to supply imbalance globally, we see prices of titanium dioxide rising by $150 a tonne in October and if there are other related cost pressures, only then a decision on price hike would be taken,” Bharuka said.
The current prices of titanium dioxide are between $2,600 and $2,700 per tonne, he said.
It also plans to invest Rs600 crore to raise capacity by half in three years.
“As of now, our capacity is 200,000 tonnes per year. Over next three years, we would expand at various locations, including Hosur (in Tamil Nadu) and Maharashtra,” Bharuka said.
In August, the firm’s board had approved investing about Rs680 million for brown-field capacity expansion at one of its units. The paints maker plans to have 40-45 retail stores across India by the end of FY11 from the current 25 stores, he said.
Shares of the firm ended 1.32% down at Rs794.85 in a firm Mumbai market.