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Setting its sights on becoming a €1 billion (about Rs 6,800 crore) entity in India by 2015, global leading paints and coatings firm AkzoNobel will invest Rs 200 crore to set up a new manufacturing plant in Madhya Pradesh to ramp up operations in the country.
As part of the strategy, the company, which is mainly into decorative paints, performance coatings and specialty chemicals, has announced its foray into the wood coatings segment in India.
“We are now investing more in India as the country is one of the key high growth markets for us globally. We are investing Rs 200 crore in a multi-business site in Madhya Pradesh,” AkzoNobel CEO and Chairman of Board of Management, Mr Hans Wijers, told PTI.
At present, the company has five plants across India.
The new plant will be operational by 2013 and will manufacture all its products.
The AkzoNobel India Country Director, Mr Amit Jain, said: “In the initial phase, the plant will have a capacity of 50 million litres of paint a year and will later go up to 100 million litres per annum.”
The company has acquired 55 acres to set up the new plant, which is located 20 km from Gwalior.
Mr Wijers said the investment on a greenfield plant and entry into new segment are part of AkzoNobel’s plans to quadruple sales in India within the next four years to touch €1 billion.
“I am optimistic about India and feel satisfied to see the increased growth momentum of our combined business in the country...The launch of our new wood coatings business here is in line with our strategy and the potential we see in India as a market,” he said.
He said being the leaders in the wood coatings globally, the company will leverage its technology and expertise to bring the product in India.
Mr Wijers said foraying into the wood coatings business is a big move for the company and “will catapult it into the big league in the coatings market in India“.
Besides, AkzoNobel is also planning to tap the mid-market segment by creating more products in affordable price range.
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