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| Akzo Nobel plans new Rs 250 cr plant in India |
| Press Trust of India / New Delhi May 15, 2011, 14:52 IST |
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Global paints and coatings maker Akzo Nobel plans to set up a new manufacturing plant in India at an investment of up to Rs 250 crore as part of a strategy to become a one billion euro entity in the country by 2015.
The Indian arm of the Amsterdam-based company is scouting for locations in Madhya Pradesh and Karnataka to set up the plant, which it expects to be ready by FY13.
"Currently, we are pretty close to full capacity and the management understands that in order to achieve our target of becoming a one billion euro entity in India by 2015, we need more capacity," Akzo Nobel India Chairman Nihal Kaviratne told PTI.
Akzo Nobel India Ltd is the listed company of the group and is mainly into decorative paints, automotive coatings and surface chemistry. The group's other business areas such as performance coatings and specialty chemicals are also significant in India but are not under the aegis of the publicly listed entity.
In the year FY11, Akzo Nobel India reported a total revenue of Rs 1,096.8 crore with a profit after tax of Rs 176.6 crore.
The company, which currently has an installed capacity of 80 million litres per annum of decorative and auto paints at different locations including Hyderabad, Mohali and Thane. It is at present quadrupling the capacity of its Hyderabad plant to 40 million litres per annum. The additional capacity is slated to be available by September this year.
"The brownfield expansions are not going to be enough ... The idea is to build new plant that we need to be ready by FY13. We have already started scouting for locations and are currently talking to Madhya Pradesh and Karnataka governments," Akzo Nobel India Ltd Managing Director Amit Jain said.
Asked about the investments and size of the new plant, Kaviratne said: "It will be significant and could be around Rs 200 crore to Rs 250 crore and the capacity can be anywhere between 50-100 million litres per annum."
He said the company will also be investing in capability and brand building exercise in order to achieve the stated aim of 2015 but did not disclose details.
As a consumer brand, the company will be emphasising on Dulux, which it had inherited after the global acquisition of ICI Paints by Akzo Nobel NV in 2008, both in the premium and mid segment.
"In the economy range we will leverage on the ICI brand," Jain said, adding the aim of the company is to be among the top two players in each of the segment it is present.
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