Business

JSW Paints eyes turnover of ₹2,000 crore in 3 years

A.S. Sundaresan

A.S. Sundaresan  

Firm to target south, west markets.

JSW Paints, a greenfield venture of the $14-billion JSW Group that began commercial production this April, is targeting to clock a turnover of ₹2,000 crore in three years from the southern and western markets it intends to focus upon initially.

The company has two manufacturing facilities set up at an investment of about ₹600 crore. One of them is a 25,000 kilo litre (KL) per annum industrial coil coatings plant near Mumbai and another a 100,000 KL plant at Vijay Nagar, near Bellary, for decorative paints.

Full capacity utilisation

In three years, the company expects the capacity to be fully utilised. “When we do [that, we] will be able to generate a turnover of over ₹2,000 crore, of which 12-15% will come from Andhra Pradesh and Telangana,” said A.S. Sundaresan, JMD and CEO, JSW Paints here on Wednesday.

In a media interaction, he said the company expected decorative paints, in line with the industry pattern, to contribute over 75% of the revenue, while the rest will come from industrial coil coatings. The focus initially will be on covering all the southern States, Maharashtra Gujarat and some parts of Madhya Pradesh, he said. Subsequently, the company would start working towards becoming a pan India player.

“We will be launching State by State… setting up our dealer network and building our franchise with contractors and consumers. Over the next three years, we will focus in these markets with [Vijay Nagar] plant and build a 5% share in south and west for decorative paints,” he said.

A release said in industrial coatings, the company has commenced operations with coil coatings, while in the decorative paints segment it will offer a range of only water-based paints for interior and exterior walls, wood and metal. The paints business is the JSW Group’s diversification into consumer facing businesses and part of the plan to make a comprehensive offering for consumer homes through steel, cement, furniture and now paints.

To a query, he said “There is a little bit of slowdown in new constructions, but new constructions are only 20% of the demand for paints. 80% of demand is from re-painting. That is where the larger market is and there will always be a play there. New constructions, we believe, will improve. We are a long term player.”

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Printable version | Apr 6, 2020 1:55:47 AM | https://www.thehindu.com/business/jsw-paints-eyes-turnover-of-2000-cr-in-3-years/article29713693.ece

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