Kolkata: Nippon Paint, the only multinational paint company operating in India, is considering establishing a manufacturing facility in West Bengal in the near future, according to Sharad Malhotra, Managing Director of Nippon Paint India. The company aims to capture a double-digit market share in the decorative paints segment in the eastern region within the next seven to eight years. Nippon Paint entered the eastern decorative market last year.
Expansion Plans
Malhotra, who was in Kolkata on Thursday, informed reporters that the company currently operates seven factories across India. It plans to increase this number to 15 over the next three years through both greenfield and brownfield expansions. For Nippon, the decorative segment accounts for 40% of its portfolio, while the industrial segment contributes the remaining 60%. Within the industrial category, there are several sub-segments; for the automotive original equipment manufacturer (OEM) business, Nippon has a joint venture with Berger Paints.
Focus on Eastern Market
Malhotra noted that until last month, Nippon's decorative paints presence was limited to southern India. "We want to focus on the East in the decorative segment now," he said. "The East is a very premium market for decorative paints, and we hope to do well." The company currently holds a 2% market share in the decorative segment and has set a target of 4% over the next three years, by 2029-30. Malhotra highlighted that the eastern region constitutes 20% of the country's decorative market, which is valued at approximately Rs 10,000-12,000 crore.
Impact of Global Conflicts
Commenting on the impact of the US-Iran conflict, Malhotra explained that the effect is more pronounced on solvent-based industrial paints than on mostly water-based decorative paints. This suggests that the decorative segment may be less vulnerable to such geopolitical tensions.
