| Shalimar Paints eyeing greenfield options in southern India in a bid to expand its manufacturing base.
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| Speaking on the sidelines of the company’s annual general meeting, Ratan Jindal, director of Shalimar Paints, said the company had decided to expand its presence in the south which would mostly likely be through the greenfield route.
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| The investment in the venture could be to the tune of Rs 15-20 crore.
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| Jindal said the new plant would cater to both the decorative and industrial segments.
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| Although the location had not been identified as yet it could be Bangalore.
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| The expansion programmes lined up would take Shalimar’s capacity from 33,000kilo litres (kl) to 40,000kl.
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| The company has three manufacturing units, at Howrah, Nasik and Sikandrabad.
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| The Sikandrabad presence was by virtue of acquisition of assets of American Paints in 2003.
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| Jindal explained that Shalimar was adequately present in all other regions except the south and hence the move to consider a greenfield plant there.
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| Shalimar’s strategy was to focus on the emulsions segment, particularly the exterior segment, as well as on the fast growing industrial segment in order consolidate its position in the industry.
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| In the decorative paints category, exterior wall finishes segment happened to be the fastest growing segment.
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| The company recently undertook expansion of its Sikandrabad factory and was also aggressively promoting installation of tinting mechanisms.
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| Further, Shalimar was weighing tie-ups with international paint majors.
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| Jindal clarified that the tie-up would be for technical collaboration and there would no equity participation.
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| Ratan Jindal reiterated his commitment to the company and ruled out any diluation of stake.
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| He said that the economy was on an upswing and prospects for paint companies was positive.
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| The fast growth of user industries like automobiles and steel was expected to give further impetus to the demand for industrial paints.
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| The company has increased the spread of Color Space, its colour tinting system.
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| A large number of Color Space systems had been installed at dealer outlets. |
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