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One of the leading paints companies of the country, Kansai Nerolac is all set to come up with a manufacturing plant at the Saykha industrial estate being set up by the Gujarat Industrial Development Corporation (GIDC) near Bharuch.
According to sources in the government, the company has been allotted 1.53 lakh square meter of land at a price of Rs 23 crore in this new and upcoming estate. "Kansai Nerolac has been allotted land at the Saykha industrial estate that is coming up over 2,000 hecatres (Ha). The land cost of the 1.53 lakh sq meter plot is around Rs 23 crore," said a senior official. Kansai Nerolac is estimated to be investing around Rs 350 crore in Saykha.
An e-mailed query sent to the company did not elicit any response.
However, Kansai Nerolac Paints Ltd has informed the Bombay Stock Exchange that the Board of Directors of the company at its meeting held on May 08, 2015, has approved setting up of a paint manufacturing unit at Sayakha Industrial Estate in Gujarat having capacity of 42,000 tonnes year, which is expandable in phases, at an estimated cost of Rs 350 crore.
Kansai Nerolac Paints Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 08, 2015, has approved setting up of a paint manufacturing unit at Sayakha Industrial Estate in Gujarat having capacity of 42000 MT/ year, which is expandable in phases, at an estimated cost of Rs 350 crores.
The estate is focussing on dyes, pigments, intermediates and engineering firms. Of the total 2,000 hectares of land which has been acquired around 2011, the industrial estate would come up over 1200 hectares. The remaining would be for infrastructure, roads, lights, open spaces etc. According to state government officials, the infrastructure would be ready within the next 9-12 months.
The official also informed that among other key companies who would be coming up at the Saykha estate, are Fumo Chem Pvt Ltd, Jay Chemical Industries Ltd, Meridian Chemicals, GSP Crop Science Pvt Ltd etc.
Kansai Nerolac Paints Ltd (KNPL), a subsidiary of Kansai Paint Co. Ltd., Japan, started as Gahagan Paints and Varnishes Co. Ltd. in the year 1920.
Having completed 94 years, Kansai Nerolac is the second largest coating company in India and a market leader in industrial coatings.
The company has four manufacturing facilities in the country, at Lote in Maharashtra, Bawal in Haryana, Jainpur in Uttar Pradesh, and the latest state-of-the-art plant at Hosur in Tamil Nadu.
During 2013-14, the company inaugurated its new emulsion plant at Jainpur and new polyester resin plant at Lote.
Kansai Nerolac Paints reported a 33.67 per cent increase in its standalone net profit at Rs 65.66 crore for the third quarter ended on December 31, 2014. Its net sales during the quarter under review stood at Rs 884.29 crore.
As on March 2014, the size of the paint industry is estimated at around Rs 31,650 crore.
The decorative paints segment is expected to be around Rs 22,450 crore; whereas the industrial segment is expected to be around Rs 9200 crore. In the long term paint industry is expected to grow roughly at 1.5 to 2.0 times the GDP.
