Nippon Paint to invest Rs250 cr in next 3 years2 min read . Updated: 03 Sep 2010, 03:51 PM IST
Nippon Paint to invest Rs250 cr in next 3 years
Mumbai: Japan-based paints major, Nippon Paint, plans to invest Rs250 crore in India to expand its existing facility and set up new plants in the next three- years, a top company official said.
The company has three facilities at Pune, Bangalore and Chennai, and has so far invested over Rs250 crore in the country.
“The paints industry is growing in the country and we want to tap the market. We will invest Rs250 crore in the country by 2013. Besides, we are doubling our Chennai facility’s production capacity to 40,000 kilolitres per annum from the present 20,000 kilolitres per year by August 2011," Nippon Paint India’s president (Decorative) Ramakanth Akula told PTI on Friday.
The company has so far invested Rs60 crore in its Chennai facility and will spend another Rs30 crore for doubling the capacity, Akula said.
Of Rs250-crore investment, the company plans to invest Rs40-crore to set up a new plant at Taloja in Maharashtra by April 2011 and another decorative paints facility in Haryana by 2012.
“We will set up an industrial painting facility at Taloja in Maharashtra by April 2011. Its annual capacity is expected around 10,000-kilolitres," he said.
“We are talking to the Haryana Government for acquiring land for setting up a new plant in the state. As soon as we get the land, we will start construction of the plant," he said, adding the investment here could be around Rs100 crore.
Investments would also be made to up capacities at existing plants, Akula said.
The company, which has a presence in seven states in terms of network, intends to have a pan-India presence by 2012.
“At present, we have 500 dealers in seven states and intend to have a pan-India presence by 2012," he said.
Asked if the company was contemplating a price increase, Akula said the company would increase prices by a further 3% due to rising input costs.
“Prices of raw materials have gone up. Basically, titanium dioxide and emulsions prices have gone up significantly in the last few months. We will increase prices by at least 3% by December this year," he said.
Major paint companies recently increased their prices by 5% due to high input costs.
Nippon Paint has 300 employees in India and plans to hire another 200 people to make the total headcount to 500 by 2012.
The company had clocked a ₹ 56 crore revenue in the last financial year and targets ₹ 200 crore in the current fiscal.