JSW Paints aims at Rs 2,000 crore revenue over three years
The Sajjan Jindal-led JSW group’s JSW Paints entered the highly competitive paints industry in India with an initial investment of Rs 600 crore.
Launched on Thursday, the Sajjan Jindal-led JSW group’s JSW Paints entered the highly competitive paints industry in India with an initial investment of Rs 600 crore. The company has built two facilities- a 25,000 kilo litres coil coating facility at Vasind in Maharashtra for industrial demand and another 100,000 kl water-based decorative paints facility in Vijayanagar in Karnataka.
The latter will ramp up capacity to 200,000 kl in the next 18 months over which time the company's investment will also increase to Rs 1,000 crore, Parth Jindal, MD of JSW Paints, told reporters at the launch.
Initial industrial demand is secured from group company JSW Steel's growing demand for coil coating paints as it is nearly tripling its colour coated steel capacity to 2 MT over a year and a half. The company alone will need 40,000 kl of paint in a year, amounting to revenue contribution of about Rs 1,000 crore to the new paints venture.
"We would be catering to JSW Steel's requirements as well as that of other steel players like Uttam Galva, Essar Steel etc… We believe that with continued growth in the colour coated (steel) segment and with JSW Steel being the market leader there, JSW Paints has a right to win in that area," Jindal said. Industrial segment will contribute 25% of the business' revenue with the major contribution coming from the decorative segment.
The company is looking to launch in all markets of west and south India by September with a pan-India presence planned to be achieved in the next three years. The revenue target will be met over three years when it achieves full capacity utilisation.
India's organised paints industry is expected to cross Rs 50,000 crore by value by 2020 with CAGR of 15% and this price-sensitive space is dominated by majors like Kansai Nerolac and Asian Paints. By 2025, JSW Paints aims to break into the top 3 paints brands with a market share of 10% and its strategy is to position itself as a paint maker that offers eco-friendly products with a uniform competitive pricing across the colour spectrum. With this venture, the group has added another vertical to its consumer facing businesses that already includes JSW Cement and JSW Furniture launched last month.