January 28, 2017 7:44 am JST

Nippon Paint to quadruple Indian auto paint capacity with new plant

Part of plan to grab 30% market share

OSAKA -- Nippon Paint Holdings plans to quadruple production capacity for automotive paint in India this year, adding a plant to complement a recent factory upgrade.

The Osaka-based paint maker will spend a total of around 4 billion yen ($34.7 million) on the expansion, raising capacity in the South Asian nation to an annual 25,000 tons of auto paint.

The goal is to have a new plant in the southern city of Hindupur up and running by the end of the year. The factory will produce mostly water-based paint designed to prevent rust. This location will supply such Indian automakers as Tata Motors and is close to a Toyota Motor plant as well.

Nippon Paint has also added capacity at a plant in the northern city of Delhi. Maruti Suzuki India, the country's top automaker, is at work on a new factory in the north, and demand for auto paint is expected to surge.

East Asia accounts for around 60% of Nippon Paint's sales. But in India, where new-auto sales are expected to hit 5.5 million units in 2020, the company has less than 10% of the paint market even after last year's merger of automotive coatings operations with Berger Paints India. Kansai Paint's share tops 50%. With its investment blitz, Nippon Paint aims to close in on its Japanese compatriot and eventually lock down a 30% share.

(Nikkei)

Nippon Paint Holdings Co., Ltd.

Japan

Market(Ticker): TKS(4612)
Sector:
Industry:
Process Industries
Industrial Specialties
Market cap(USD): 12,475.1M
Shares: 325.40M
Asia300

Tata Motors Ltd.

India

Market(Ticker): BOM(500570)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 22,758.13M
Shares: 3,395.85M

Toyota Motor Corp.

Japan

Market(Ticker): TKS(7203)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 176,596M
Shares: 3,263M
Asia300

Maruti Suzuki India Ltd.

India

Market(Ticker): BOM(532500)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 30,642.36M
Shares: 302.08M

Kansai Paint Co., Ltd.

Japan

Market(Ticker): TKS(4613)
Sector:
Industry:
Process Industries
Industrial Specialties
Market cap(USD): 6,033.85M
Shares: 272.62M

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