Nippon Paint to tap Rs 12,500-cr construction chemicals market division

Paint manufacturer Nippon Paint (India) Pvt Ltd would foray into the Rs 12,500 crore construction chemicals market as it eyes to expand the product portfolio, the company said on Saturday.

With its entry into the construction chemicals division apart from the current paint and coatings product range, Nippon Paint would offer products and solutions under dry mix, repair and maintenance, construction chemicals and waterproofing categories.

The products to be launched (in construction chemicals) would be focused on three segments -- during construction, post construction and taking up repair and maintenance.

With this expansion, Nippon Paint said it also has plans to increase the dealer touch points by 50 per cent.

 

Attributing to the increase in residential and commercial building constructions for its foray into the construction chemicals division, Nippon Paint said the growing trend of urbanisation was expected to drive this category.

"Through this expansion strategy, Nippon Paint will make its products available across segments," the company said.

Nippon Paint said liquid based products would be manufactured at its Chennai unit while aerosol-based products would be supplied by acquired companies and volume-based products would be manufactured by strategic manufacturing partners.

"We are happy to expand into the construction chemical solutions market. Pegged at being an Rs 12,500 crore market, this segment provides ample opportunities for growth and innovation," Nippon Paint (Decorative) President Mahesh Anand said.

"With Nippon's strong presence, market know-how and distribution strength, we are positioned perfectly to ace this segment," he said.

Housing sales in India in 2021 increased by more than 51 per cent as compared to 2020. Though awareness levels were low, research reports project a compounded annual growth rate (CAGR) of over 10.4 per cent in the next three years, the company said.