Asian Paints today said it will form a second new joint venture with US-based PPG Industries, besides expanding their existing JV in order to accelerate growth of non-decorative coatings business in India.
As per the plan, Asian paints Limited (APL) and PPG will establish a second 50:50 JV, Asian Paints said in a filing to Bombay Stock Exchange (BSE).
This will be over an above expanding their current 50:50 joint venture -- Asian PPG Industries Ltd (APPG), it added.
APL and PPG have agreed that APL will take lead in the second venture and PPG will take lead in APPG in order to utilise their respective strengths, it said.
"The modalities are being worked on. The arrangement is subject to regulatory approvals and is expected to be completed during 2011," Asian Paints said.
The second joint venture will service the protective, industrial powder, industrial containers and light industrial coatings markets, it added.
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"In partnership with PPG, with whom we have had a very successful collaboration, APL expects that the partners together will be bale to take advantage of the rapidly developing Indian economy and serve all customers for non- decorative products in the Indian market," Asian Paints MD and CEO P M Murty said.
He further added, "Through this new approach we will accelerate growth by leveraging PPG's technology and global customer relationships while continuing to build on Asian Paint's customer base, manufacturing footprint, distribution channels and local relationships."
PPG Industries is one of the world's leading coatings and specialty products company.
APPG currently caters to the Indian transportation coatings market and this change will expand its scope to additionally serve the industrial liquid, marine and consumer packaging markets.
Asian Paints today posted a rise of 15.61 per cent in its net profit to Rs 206.60 crore for the third quarter ended December 31, 2010, compared to Rs 178.69 crore in the same period previous fiscal.
Asian Paints scrips closed the day at Rs 2,622.30 on the BSE, down 1.45 per cent from the previous close.