| Kansai Nerolac-90 Years In India
Announces a massive Rs 400 crore investment at Hosur and expansion of the Bawal Unit. With it's core strength of Automotive paints and coatings and leadership in industrial paints and coatings, Kansai is proud to announce that every 7 out of 10 cars in India are painted with the colours of Kansai Nerolac.
With a new advertising thrust lead by Shahrukh Khan, the corporate is now targeting key competitors in the residential decorative paints segment. So there is no reason why Kansai should not fetch a PE of 30 based on FY11e earnings, when Asian Paints gets the same PE multiple. The ensuing festive should be even stronger than the first half of 2011.
The picture of paint demand remains very positive over the long term. During the quarter the company has commissioned its new facility at Hosur. Further Board has announced today additional outlay of Rs 230 crores towards expansion of the Hosur facility. With this the total amount sanctioned by the Board for expansion is Rs. 409 crores.
Outlook of Indian Paint Industry
The size of domestic paint industry is estimated at Rs 21,000 crores as of Mar 2010. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry.
About Kansai Nerolac Paints Ltd
Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 89 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest paint company in India and is the leader in Industrial segment, having a turnover of over Rs 1972 crores.
The company has five strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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