Sheenlac Paints forms JV with Jenson & Nicholson

To tap the decorative paint industry, paint manufacturer Sheenlac Ltd today said it has formed a joint venture with another paint maker Jenson and Nicholson.
Sheenlac Paints will hold a 49 per cent stake in the newly-formed entity -- Jenson and Nicholson Paints Pvt Ltd -- while Jenson and Nicholson will hold the majority 51 per cent stake. The two companies pooled in Rs 10 crore to set up the venture in the initial phase.
The JV has set a target revenue of Rs 100 crore for next year, Sheenlac Paints Ltd CEO Sridhar Krishnamoorthy told reporters here.
"We have held discussions during the last five years and arrived at a structured deal now. The investments in the JV will be Rs 50 crore over a five-year period. The target revenue from the new entity will be Rs 100 crore," he said.

Jenson and Nicholson India Ltd president, Anant Sinha said, "We are excited with the joint venture. Through it, both the companies will sell decorative paints in the domestic market."
Noting that the decorative paint industry accounts for about Rs 30,000 crore business in the country, Krishnamoorthy said, "As a group, Sheenlac Paints and Jenson and Nicholson Pvt Ltd, we are looking at target revenues of Rs 750 crore."

"In this joint venture, Jenson and Nicholson are bringing their brand, while Sheenlac Paints is bringing its distribution network", he added.
Sheenlac Paints has about 15,000 sales touchpoints across India. The company has three manufacturing facilities in Tamil Nadu with a total capacity of 1 lakh kilo litres per year.

Krishnamoorthy said the JV company would serve only the domestic market.