Conglomerate JSW Group has entered the paints segment with JSW Paints, thus diversifying into the consumer-facing business.
With this launch, the group aims to make a comprehensive offering for homes through steel, cement, furniture and now paints.
The company plans to first launch its paints business in the south and west by September 2019 and then expand pan India by 2022.
”We have made investments of over Rs 600 crore in our paint business and we aim to touch Rs 2,000 crore at full capacity by FY22,” said Parth Jindal, Managing Director, JSW Paints.
He also said the company aims to be among top three brands in India by 2025, with a market share of 10 percent. Currently, JSW Paints competes with dominant players such as Asian Paints, Kansai Nerolac and Berger Paints. The size of the domestic paints industry was estimated at Rs 47,000 crore as of March 2018.
Good growth in the infrastructure, automobile and real estate sectors is likely to have a positive effect on the overall demand for paints. Jindal expects the organised paint industry to touch Rs 100,000 crore soon.
JSW Paints will manufacture and market both industrial coatings and decorative paints, offering all the colours at one price to compete with the existing players.
For industrial coatings, the company has commenced operations with coil coatings, while in the decorative paints segment it will offer a range of only water-based paints for interior and exterior walls, wood, and metal.
A plant for industrial coil coating has been started at Vasind with an annual capacity of 25,000 KL, while a water-based decorative paint plant with 100,000 KL annual capacity has been opened at Vijayanagar.
In the decorative paints market, the company aims to achieve a share of 5 percent within three years, and double it to 10 percent within five years.