Nerolac Paints to invest Rs 400 cr on expansion
Paints and varnish manufacturer Kansai Nerolac Paints on Thursday said it will invest Rs 400 crore in the next 20 months for the second phase of expansion of its Hosur facility in Tamil Nadu.business Updated: May 06, 2010 16:01 IST
Paints and varnish manufacturer Kansai Nerolac Paints on Thursday said it will invest Rs 400 crore in the next 20 months for the second phase of expansion of its Hosur facility in Tamil Nadu.
"The company's board has approved to invest Rs 400 crore for the second phase of its Hosur facility, which would lead to the company's overall capacity increasing by 35 per cent," Kansai Nerolac Paints Managing Director H M Bharuka told PTI.
After the expansion, the company's overall capacity will increase to 2.8 lakh tonnes per annum from the current 2 lakh tonnes per annum.
The company has already invested Rs 100 crore in the first phase of its Hosur plant, which has already started production from January this year.
It has also decided for a 4 per cent increase in the price of its products from May 10.
"Due to the rise in the price of raw materials, the company has decided for a 4 per cent hike across its product range from next week," Bharuka said.
Besides, the company today announced the launch of a new paint -- Nerolac Impressions Eco Clean -- which would be odourless and low on Volatile Organic compounds (VOCs).
"This is a product with no smell and low VOC, making it the first of its kind in the country," Bharuka said.
The new paint will be produced in all the five facilities of the company across the country. It has more than 12,000 dealers and it plans to add 10 per cent more this year.
Kansai Nerolac Paints had reported a net profit of Rs 165.50 crore for the year ended March 2010, compared to Rs 98.59 crore in the last fiscal.
For the fourth quarter ended March 31, the company posted a net profit of Rs 33.92 crore.
Shares of Kansai Nerolac Paints were trading at Rs 1,493 on the Bombay Stock Exchange, down 0.28 per cent from its previous close.