Nerolac to set up Rs 90 crore unit in Haryana

The company will initially set up a 20,000 tonne unit to produce industrial paints. The capacity will be stepped up in phases to bring it to one lakh tonne per annum which will also include decorative paints.

H M Bharuka, managing director, said, "The proposed investment will be financed through internal accruals. While we are the undisputed leaders in the industrial segment we would like to acquire a similar status in the decorative paints segment."

"There is a huge potential for growth as the per capita consumption of paint in the country is very low. The company's expansion plans augur well with our strategy to expand the overall paint market," Brahma added.

The company is also enhancing the capacity of its Kanpur facility by around 30 per cent. There are plans to set up a facility for water-based paints, Ashok Saini, vice President (special projects) Goodlass Nerolac Paints said.

The total capacity of Goodlass Nerolac Paints, a subsidiary of Kansai Paints""Japan, is 1.08 lakh tonne spread across four locations including Kanpur (Uttar Pradesh), Chennai (Tamil Nadu), Ahmedabad (Gujarat) and Lote (Maharashtra). The company recently announced the closure of its unit at Parel in Mumbai.

The industrial paints category, which is the company's primary strength, now accounts for 45 per cent of its turnover, while the decorative segment's contribution has increased to 55 per cent.

The ratio has reversed over the last four years. The company enjoys a market share of 65 per cent and 14 per cent in industrial and decorative paints segments respectively. Of the Rs 6,000 crore paint market, decorative segment accounts for Rs 3,500 crore.