Kansai Nerolac to invest Rs 600 cr to up capacity
KNPL plans to invest around Rs 600-crore over the next three years for upping its production capacity by 50 per cent
By PTI |
MUMBAI: Leading paint manufacturer, Kansai Nerolac Paints (KNPL), plans to invest around Rs 600-crore over the next three years for upping its production capacity by 50 per cent, a top company official said.
"We want to increase our production capacity by nearly 50 per cent in the next three-years for which we have planned an investment of around Rs 600-crore," the company's Managing Director, H M Bharuka, said.
The company presently has a capacity of 2-lakh tonnes per annum.
KNPL has also earmarked around Rs 78-crore for brand-building and increasing the number of its paint stores pan-India, Bharuka said.
The company presently has 100 colour stylers and 25 impression style zone outlets and is planning to add nearly 150 and 40 more, respectively, he said.
According to Bharuka, paint prices could increase after October due to a rise in the cost of the raw material, titanium dioxide (TiO2).
During the global meltdown, the companies supplying the raw material had not upped their capacities, he said.
"This created a supply-demand mismatch. Hence, paint manufacturers imported the material from outside at nearly USD 2,500-2,600 per tonne. This cost is likely to go up by USD 150 after October," he said.
However, the decision on prices would be taken only after October, he said.
Prices have already risen by seven per cent, he said. "The seven per cent (increase) also includes two per cent of excise duties. We have still not transferred the difference of an additional two per cent, which we have incurred due to the rise in raw material cost, to our customers. We can just hope that prices will come down in the future," he said.
"We want to increase our production capacity by nearly 50 per cent in the next three-years for which we have planned an investment of around Rs 600-crore," the company's Managing Director, H M Bharuka, said.
The company presently has a capacity of 2-lakh tonnes per annum.
KNPL has also earmarked around Rs 78-crore for brand-building and increasing the number of its paint stores pan-India, Bharuka said.
The company presently has 100 colour stylers and 25 impression style zone outlets and is planning to add nearly 150 and 40 more, respectively, he said.
According to Bharuka, paint prices could increase after October due to a rise in the cost of the raw material, titanium dioxide (TiO2).
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During the global meltdown, the companies supplying the raw material had not upped their capacities, he said.
"This created a supply-demand mismatch. Hence, paint manufacturers imported the material from outside at nearly USD 2,500-2,600 per tonne. This cost is likely to go up by USD 150 after October," he said.
However, the decision on prices would be taken only after October, he said.
Prices have already risen by seven per cent, he said. "The seven per cent (increase) also includes two per cent of excise duties. We have still not transferred the difference of an additional two per cent, which we have incurred due to the rise in raw material cost, to our customers. We can just hope that prices will come down in the future," he said.
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