In what could be termed good news in times of recession,Jotun Paints India,which had set up a manufacturing facility at Ranjangaon in March last year,has reported a turnover of around $29 million for the current fiscal,and is targeting a market share of eight per cent by 2010.
Addressing reporters here on Wednesday,Claes Jansson,managing director,Jotun,said,We have yet decided where to set up our next plant,but are looking at NCR and the Delhi region. We would like to cater to the northern market,which would be difficult to do from the Pune plant due to logistical reasons.
The Ranjangaon facility has a production capacity of up to 50 million litres in wet paint and 10,000 metric tonnes of powder coatings. The plant produced half a million litres per month,which is expected to increase to 10-11 million litres annually from 2009. The company would invest $50 million in the new plant,Jansson said.
Regarding the groups strategy for growth,Kersi Kapadia,general manager,Jotun,said the high margins which dealers of Jotun paints enjoyed,would play a key role. Whereas our competitors offer a margin of 3-5 per cent to dealers,we provide a margin of 10-12 per cent. Jotun marketing strategy of exclusive shops,which store only Jotun paints,is expected to pay off,said Kapadia. Jotun has 150 such shops across the country,of which five are in Pune. Jansson said the number would go up to 600 within two years.
According to industry sources,the Indian paint industry is growing at 12 per cent per annum and is valued at Rs 16,000 crore.
The industrial paint segment accounts for 30 per cent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold,against a global average of 50:50.