Akzo Nobel to invest Rs90 crore in new India plant

24 November 2008

The Netherlands-based paints and coating manufacturer Akzo Nobel has outlined an expansion strategy for India, with an investment of Rs90 crore in a new plant in the country.

The new plant will reportedly have an annual production capacity of 85 lakh litres of coil coatings and specialty plastic coatings, once it is 100 per cent operational sometime in 2010. It will cater to demand from the steel and aluminium construction market in India and neighbouring countries.

The new plant will be located near the company's existing 11,000 square foot facility at Bangalore, which has an annual capacity of 30 lakh litres.

Akzo Nobel India general manager for industrial finishes Binoy Chakraborty said that the Rs90 crore, 5,000 square feet plant would commence operations by 2010, catering exclusively to industrial customers.

The overall market, he said, is only for two segments, excluding coating and the specialty plastic coating, and is valued at €100 million per year. This number is likely to double in around five years, he added.

Akzo Nobel India claims to be the number two player in the Indian market, commanding a 25 per cent market share. The investment in the new plant is a move aimed at consolidating this market position.