Business

JSW Paints sets sights on south, west India

Brush with expansion: The firm is eyeing ₹2,500 crore revenue in 3 years, says A.S. Sundaresan.

Brush with expansion: The firm is eyeing ₹2,500 crore revenue in 3 years, says A.S. Sundaresan.   | Photo Credit: Somashekar G.R.N.

Company mulls setting up new manufacturing facility costing ₹75 crore

JSW Paints Pvt. Ltd., a part of the $13-billion JSW Group, is planning to put up a new manufacturing plant to meet its growth target, said a top official.

“We have set ourselves a target to achieve 5% market share in south and west in decorative paints in two to three years,” said A.S. Sundaresan, CEO, JSW Paints.

“We started the paint division in April 2019 and it is growing. Right now, we have two plants and are planning to expand our business as it is growing at a healthy rate,” he said.

The JSW Group set up its first largest and fully-automated industrial coil coatings facility with an annual capacity of 25,000 kilolitre (KL) in Mumbai and decorative paints unit with 100,000 KL annual capacity at Vijayanagar in Karnataka at a cost of ₹600 crore.

“The industrial coil coating caters to B2B segment and decorative paints to B2C segment. Our plan is to double the sales volume of decorative paints in the next two to three years to capture a market share of 5% in south and west,” he said.

“As we started with a small base, our growth is healthy and we are giving competition to well-known firms. And, this calls for expanding our present facility in Vijayanagar and putting up a new unit elsewhere. It entails an investment of up to ₹75 crore for the new unit,” he added.

Currently, JSW Paints are available in the five southern States and Maharashtra. It would cover the entire western region during the current quarter. Next fiscal, the products would be available in the northern and eastern markets and pan-India in three years.

“The demand for colour-coated paints is growing and it would take at least one year for us to double the production capacity. Besides, catering to domestic market, we will also export 20% of our produce to European, west Asia, South East Asia and African markets,” he said.

Mr. Sundaresan said that about 75% of the production is consumed in-house and this would get altered to 60:40 ratio in the coming months as production volume picks up.

Over the next three years, the company hopes that the paint division would fetch a revenue of ₹2,000 crore to ₹2,500 crore, of which decorative paints would account for ₹1,500 crore.

Asked About the network expansion, he said by March the company would have enrolled 1,000 retailers and this would be doubled next year. “‘Our vision is to have 10% market share by 2025-26,” he added.

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Printable version | Mar 29, 2020 9:32:09 AM | https://www.thehindu.com/business/jsw-paints-sets-sights-on-south-west-india/article30853978.ece

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