J & N, Japanese Firm Tie Up For Marine Paints

The new company, which has been christened Chugoku Jenson and Nicholson Ltd, has an initial capital base of Rs 1 crore. The equity base will be split equally with Chugoku.

The joint venture company, however, will only be marketing the product, which is a specially dedicated line for painting of ships and other marine vessels.

The manufacturing activity will be taken up by Jenson & Nicholson under a license agreement with Chugoku.

J&N will have to invest approximately Rs 3 crore in expanding its production facilities to meet the additional requirements of the high technology paints.

The initial capacity will be around 15 million litres. Additional capacities will be set up in Mumbai and Naihati (near Calcutta) plants of the company. J&N hopes to capture around 25 per cent of the Rs 250-crore Indian marine paints market in the first three years. The company will face stiff competition from Asian Paints, which has a technical tie-up with Sigma.