Nippon Paint Plans East India Expansion, Considers Bengal Manufacturing Base

Nippon Paint India is considering setting up a manufacturing facility in West Bengal as part of its long-term expansion plans, according to managing director Sharad Malhotra. The company, currently the only multinational paint manufacturer operating in the country, is targeting a double-digit market share in eastern India's decorative paints segment over the next seven to eight years after entering the region last year.

Malhotra, who was in the city on Thursday, told reporters that the company has seven factories in India and plans to increase the count to 15 in the next three years through both greenfield and brownfield expansions.

Decorative paints account for around 40% of Nippon Paint India's business portfolio, while industrial coatings contribute the remaining 60%. Within the industrial segment, the company operates across multiple categories, including automotive OEM coatings through a joint venture with Berger Paints.

Malhotra said that until last month, Nippon only had a decorative paints presence in the South. "We want to focus on the East in the decorative segment now. The East is a very premium market for decorative paints, and we hope to do well," he added.

Nippon Paint currently holds around 2% of India's decorative paints market and aims to double its share to 4% by 2029-30. Malhotra noted that eastern India represents nearly 20% of the country's decorative paints market, which is estimated to be worth ₹10,000-12,000 crore.

Commenting on the ongoing US-Iran conflict, he said the impact on the paints industry is expected to be more significant for solvent-based industrial coatings due to their higher dependence on petrochemical feedstocks, while the largely water-based decorative paints segment is likely to remain relatively insulated.

Source: Times of India