The Hindu Business Line : ICI India to invest Rs 250 cr; will set up new facility

NEW DELHI: Paint manufacturer ICI India Ltd will invest over Rs 250 crore in the next two years to set up a new production unit and modernise its existing facilities.

" The demand for our paint is more than what we produce currently. Of our total sales, about 20 per cent is outsourced to manufacture by some local units. Now, we are planning to set up our own facility to produce that volume,'' ICI India Ltd Chief Finan cial Officer and Executive Director Sandeep Batra told PTI on the sidelines of CFO Asia's summit here.

The company, which makes the 'Dulux' brand of paints, currently has three manufacturing units in Mumbai, Hyderabad and Chandigarh with a total production of about 70 million litres per annum.

On the possible capacity and location of the plant, he said, "We are at the final stage of planning and after that only everything will be finalised. But, we will start the construction of the unit by the end of this year and it will be completed within two years.'' ICI India, a part of Dutch-based Akzo Nobel Group, will invest Rs 150-200 crore in setting up its fourth unit, he added.

Besides, the company will invest Rs 25-30 crore each year in upgrading its manufacturing equipments in the existing plants, Mr Batra said. When asked about the source of funding, he said it would be entirely through internal accruals. The company curre ntly enjoys about 13 per cent market share in overall paint category, he said, adding, "In the premium category, we have over 25 per cent market share and we are constantly growing in this segment''.

ICI India registered total sales of Rs 1,000 crore in 2006-07. "We are growing at 20 per cent annually. We are yet to declare the results for the outgoing fiscal,'' Mr Batra added. - PTI

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