Nippon to widen paint offerings

Nippon Paint, the 125-year-old international paint major, is likely to start marketing more of its products such as industrial paints, automotive and marine paints in 2008 in India. The $3-billion Japanese company has already introduced its decorative paints here.

Its two plants - in Gurgaon and Chennai - will become operational by 2008. "Once our plants become operational and we get a measure of the decorative paints market here, we will launch our other products as well," W M Yip, managing director, Nippon Paint (India), said on the sidelines of a press conference organised for the launch of the company's products in Hyderabad.

The Indian paints industry is estimated to be worth Rs 9,000 crore and 1.05 million tonne by volume. Nearly 70 per cent of this market is organised while 30 per cent unorganised.

In the organised market, decorative paints make up 75 per cent of the market, amounting to Rs 4,725 crore. Last year, this segment grew by 16 per cent.

Nippon Paints is eyeing market share of 5-10 per cent in three years. The company has launched its products in Tamil Nadu and will be entering the other southern states shortly.

Ramakanth Akula, vice-president (decoratives), Nippon Paint, said the company would set up 50 exclusive outlets in south India by 2006.