Calcutta-based paints major Jenson & Nicholson India Ltd has projected a total income of Rs 144.23 crore and a gross profit of Rs 14.79 crore for the current year. The estimation for 1998, however, is significantly higher, where the company's income is expected to hit Rs 189.70 crore and the gross profit Rs 19.03 crore.
The 1998 figures will be undergoing a steep rise because all the proposed projects and tie-ups of the company will be fully operational by then, says S Subberwal, managing director, Jenson & Nicholson.
"We are tying up with big international players in the industry for almost every paints division in the country," said Subberwal. The company has just finalised settlements of its 50:50 joint venture with Herberts for the auto re-finish paints business.
More From This Section
Clearance from the Foreign Investments Promotion Board (FIPB) and the Reserve Bank of India (RBI) for the project are expected by the middle of this month.
The company also has a 50:50 joint venture with Japanese marine paint company Chugoku Marine Paints. It has received clearance from the FIPB and is set to commence operations soon. The production will take place from Jenson & Nicholson's plants in Mumbai and Calcutta, and the yearly production will be around 1000 tonnes per annum.
The company has also identified two foreign companies, of which one may be a potential partner for a joint venture in the area of powder coating paints.
This apart, the company targets to have a total of 800 centres for its instacolour project developed in collaboration with Europe's Tikkurila OY, by 1999. At present there are 176 centres with instacolour facilities in the country.
"Once these centres have been established around 35 per cent of our turnover will be coming from the instacolour project," he said. The company will be investing around Rs 40 crore to set up these centres.