Norways Jotun starts operations from Pune

* Norway-based global paint major targets 8% of market share by 2010

* Adds capacity to manufacture up to 50 mn litres in Wet Paints, 10000 metric tonnes in Powder Coatings at an Investment of US$ 25 mn

"The paint sector in India offers huge potential and is a very important market for Jotun." - Odd Gleditsch d.y., Group Chairman

Chennai, March 4th, 2008: The focus is back on the Indian paint sector with the official entry of Jotun Group, one of the world's leading Paint Company, who today announced their first manufacturing facility in India. Located at Ranjangaon off Pune, the plant has been set up at an investment of US $ 25 million and will have a capacity to produce up to 50 million litres in wet paint and 10,000 metric tones of powder coatings.

Specially in India to announce this development, Mr. Odd Gleditsch d.y., Chairman, Jotun Group said India is a key market for Jotun and the group will soon look at additional investments in this high potential market that is growing in excess of 12% year on year.

Jotun paints are a pioneer in manufacturing decorative paints, industrial and marine coatings. The company has presence across 67 countries with over 40 manufacturing facilities worldwide which contribute to annual revenues to the tune of US$ 2 billion. Jotun has been present in India through franchises and has been actively monitoring the sector and strengthening its on ground presence over the last two years.

Commenting on the new manufacturing facility in India, Mr. Claes Jansson, Managing Director - Jotun Paints India Ltd. said, "We have closely assessed the Indian paint sector over the last two years and are now set with a plant of our own to make our presence felt. We look to bringing our global expertise and best practices along with world class products to the India consumer. While we will drive our dominance in industrial and marine coatings, along with the decorative segment, we will look at capturing a market share of 8% by end 2010."

Reiterating Jotun Group's commitment to the Indian Market, Mr. Odd Gleditsch d.y., Chairman, Jotun Group, said, "Sighting the thriving potential lying within Indian Paint sector, Jotun Group ventured into India, which as we foresee, is the next big market in Asia Pacific. Factors like the economic boom, surge in the construction and real estate, a very low per capita consumption will aid this growth."

Aligned to its international strategies, Jotun will retail its paints and products only through exclusive Jotun outlets ensuring a better access to cost-efficient quality paint products to the consumer. Jotun plans to interweave and integrate its expertise, values of loyalty, care, respect and boldness into the Indian Paint Scenario."

Highlighting Jotun Group's promise to give back to the community, the company has constructed a zero-emission and completely environment friendly plant. The key features of this manufacturing unit include a well-developed recycling process; wherein the waste emitted by the production processes is purified internally within the plant and the recycled water is used in the plant itself.

True to the spirit of the Jotun Group, the plant also proposes to generate employment for 250 managers, skilled and semi-skilled workers in and around the area. With Consolidated Construction Consortium ltd. as their Civil contractors, expertise of Tata Consultancy Engineers and Tipex Land Developers, Jotun has set up a state-of-the-art facility, which will not only mark the entry of the company into India, but also reiterate its commitment towards manufacturing high quality products.

The Indian paint industry growing at 12 % per annum and is valued at Rs. 80 billion. The per capita consumption of paints in India is very low at 0.8 kg per annum if compared with 4 kgs in the South East Asian nations and 22 kgs in developed countries. The global average per capita consumption is 15 kg. In India the industrial paint segment accounts for 30 percent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold as against a global average of around 50:50.

About Jotun Paints

Founded in 1926 in Norway, Jotun is one of the world's leading paint manufacturers. The group consists of 67 companies and 40 production facilities around the world and is looking at strengthening its presence in India. Outside Europe Jotun has a very strong hold in Middle-East & Asia Pacific. Jotun India Pvt. Ltd. set a shop in India in the year 2005, with an intention of providing a single source solution for all paints and coatings. Jotun's diverse product range worldwide includes decorative, protective, powder, marine, floor/concrete protection and intumescent coatings, bearing a solid testament to the company's reputation of being truly a single source solution for clients, consultants and contractors alike.