Paint and varnish manufacturer Kansai Nerolac Paints plans to invest Rs.300 crore this fiscal for setting up a new manufacturing facility in Bengaluru, reports said, quoting Managing Director H.M. Bharuka.
With the new plant, the company's annual capacity will increase to 260,000 tonnes from 220,000 tonnes across its existing 4 units.
He said the capex would be funded through internal accruals.
The company also plans to expand its distribution network by five percent from 14,000 dealers. Besides, it will add 5 new Nerolac Style Zone outlets in the current fiscal. Presently, it has 30 such stores.
On price hikes, he said, "We have taken a price hike of up to 13 percent on an average last fiscal. The market remains volatile and a lot depends on how crude oil prices behave. We have not decided on any price hike yet, but going by the market trend, it can't be ruled out."
He also said that the overall paint industry will see a slow growth at ten percent in FY13, compared to 14 percent in FY12 and 20 percent in FY11. The slowdown was also due to slower growth in the auto and white goods segment.
The company clocked a net profit of Rs.216 crore on total income from operations of Rs.2,601 crore for the fiscal year ended March 31, 2012.
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by RTT Staff Writer
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