Asian Paints is focusing on the automotive paints market in a big way, with a target of increasing the share of automotive paints in the group's total turnover from 8-9 per cent to around 25 per cent in the next five years.
Asian Paints chairman Ashwin C Choksi told Business Standard that the company will work with most of the major players in the automotive vehicles market, including, Hyundai Motors, General Motors, Daewoo Motors, Telco and Bajaj Auto.
"We are already working with the TVS group in a big way," he said.
Earlier Asian Paints forged a tie-up with United States-based PPG Industries with an eye on the automotive paints business. Choksi said the Rs 100 crore Pune plant being set up by the venture is on schedule and should be operational soon.
At present, nearly 90 per cent of the automotive paints business is cornered by multinational companies.
The business depends heavily on superior technology. Meanwhile , according to the chairman, Asian Paints is ready to file its reply before the Company Law Board in the case involving non-transfer of 4.55 per cent equity shares to Kotak Mahindra Ltd.
Kotak purchased 9.1 per cent equity in Asian Paints on behalf of ICI Plc of which it recently sold half to the Unit Trust of India.
In its petition Kotak charged the Asian Paints board of directors with not approving registration of the shares in Kotak's name despite several attempts.
This, according to Kotak, violated the Companies Act, 1956.
The 9.1 per cent equity bought in mid-1997 belonged to the then Asian Paints managing director Atul Choksey.
However, the financial institutions and the three other promoters including, the Choksis, the Danis and the Vakils stood firmly against any attempt by ICI Plc to buy equity in Asian Paints. The company's board decided not to allow such a move.
Subsequently, Foreign Investment Promotion Board also rejected ICI's application for bringing in foreign direct investment to fund the deal as the multinational could not procure a board resolution from Asian Paints.
