Denmark-based Hempel, a global paint maker of marine and protective coatings, is scouting for land in Maharashtra to set up a Rs 100-crore greenfield manufacturing facility.
Globally, Hempel is present in 80 countries and operates 23 factories. Recently, the company acquired UK-based Crown Paints, which makes decorative paints, for about $300 million.
For 2010, Hempel reported revenues at €889 million and net profit of €53 million.
Hempel aims to channel about 12 million litres of supply from the proposed unit to Sri Lanka, Bangladesh, Maldives and Nepal, besides serving domestic requirements from 2013.
Mr Umesh Singh, Director, Hempel-South Asia, confirming that the plant would be set up in Maharashtra, said, “While Hempel already has a large share of the global market in segments including wind turbines, cranes and infrastructure, India has also seen rapid growth in these segments. We look forward to supplying the protective and marine coatings to the growing markets for these segments in South Asia. In these markets, our goal is to double our 2010 turnover to above €18 million by 2013.”
Mr Singh said the protective and marine market in India was worth about Rs 1,250 crore, and the company was targeting a 15 per cent share in three to five years.
Mr Kim Junge Andersen, Chief Financial Officer, Hempel, said, “The new plant will significantly boost our ability to serve our growing customer base in this region.”
Hempel inaugurated a small Rs 4-crore manufacturing and research and development unit at Nashik on Thursday that will be largely focussed on the domestic market. The factory, spread across 1,500 sq. m, will produce 1.5 million litres annually and can be scaled up to 2.4 million litres with two shift operations.