ICI to set up decorative paints plant

18 July 2008

New Delhi: ICI India, now the subsidiary of Akzo Nobel in India, is planning to set up a decorative paints plant in India to hike capacity. The location of the plant is as yet undecided.

The company has an investible surplus of Rs 1,000 crore and may utilise this to set up either a greenfield or brownfield project said Rajiv Jain, managing director of ICI India. 

"We are running out of capacity and need to augment it. We are examining various options including setting up greenfield and brownfield projects," Jain said.

He added that the investment details of the plant are likely to be finalised by the close of the calendar year. The new plant would produce over 100 million litres a year by 2010, he added.

Company officials also said the company may set up the new plant in a tax-free zone.

ICI India currently has a total installed capacity of 120 million litres at its three plants at Thane, Mohali and Hyderabad respectively and would run out of capacity by 2011, said company officials.