Wood coatings export market expansion—Nippon Paint India

Nippon Paint, the world’s fourth largest paint company by
revenue, is considering exports from India in the areas of automobile refinish,
wood coatings, and light industrial coatings. Apart from Indonesia and
Australia, African countries have been targeted for export.

Apart from that, it is focusing on several West Asian
markets for the time being, at least until its Sharjah production plant is
completely operational. The Sharjah facility, which is part of a strategic
manufacturing relationship with Best Paint Factory, will begin commercial
production next month.

According to Sharad Malhotra, President, Nippon Paint
(India) & Senior Vice President, NIPSEA Group, after Covid, the business
began looking at the subcontinent as a viable export destination, with a focus
on Africa, Australia, and Southeast Asia. The most significant advantage was
the similarity of offerings (between India and these countries).

Initially, supplies were made to distributors, but Nippon is
now looking to increase its position in these markets by forming its own
subsidiaries.

“There is a good
market for auto refinish and wood coatings outside (of India) particularly in
places like Africa. Overall, prospects of the auto industry look good in the
long term and there will be increased demand as supply issues, particularly
things like chip shortages are sorted out,” Malhotra

In Africa, the company operates in Kenya through a
distributor and based on the developments there, it would explore more markets
in the continent. South Africa, incidentally, is one of the larger
auto-refinish markets in the region.

India Ops

Nippon’s auto refinish and allied verticals (wood coatings
and light industrial coatings) is a â‚ą300 crore vertical. On the other hand, the
auto refinish market is a â‚ą3,000 crore segment in India.

“So you see there is scope for us to grow here in India
too,” Malhotra said, adding that Nippon was “open to acquisitions too” if it
fitted the bill.

The company’s India unit is located at Bawal (Haryana), has
a monthly capacity of 1,000 tonnes. The Bawal unit operates at 75–80 per cent
capacity; with 30–35 per cent of the total production being made available
through contract manufacturing.

In October 2021, Nippon Paint had made acquired
an Indian paint company, operations of which would be scaled up too. Courtesy:
www.thehindubusinessline.com

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