Published On:May 28 2024
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JSW Paints Announces Entry into Automotive Coating Market

After achieving operational profitability, JSW Paints is set to venture into the booming automotive sector. This move comes on the heels of the JSW Group's entry into the automobile market through a joint venture with MG Motors, a subsidiary of Chinese company SAIC Motor.

The JSW Group, led by Sajjan Jindal, has acquired a 35% stake in the joint venture, JSW MG Motors India. Indian financial institutions, domestic MG Motor dealers, and employees hold additional stakes of 8%, 3%, and 5% respectively. This fresh investment will result in a capital infusion of ₹5,000 crore.

AS Sundaresan, Joint Managing Director and CEO of JSW Paints, announced that while the company is not currently involved in automotive coating, it plans to enter this market soon. The aim is to serve not only the group’s ventures but the entire automotive sector.

Sundaresan highlighted JSW Paints' focus on the broader industrial segment, noting their success in coil coating. JSW Paints was the first Indian company to develop and scale up coil coating technology domestically, whereas other suppliers rely on multinational technologies to penetrate the Indian market.

For the automotive coating business, JSW plans to develop the technology in-house, but remains open to partnerships for faster rollout and greater market share.

The Indian automotive paints and coatings market, featuring key players such as Akzo Nobel NV, Berger Paints India, Kansai Nerolac Paints, Nippon Paint (India), and PPG Asian Paints, is expected to grow from $608 million in 2023 to $911 million by 2028, at a CAGR of 8%.

With the new capital infusion, JSW MG Motors aims to increase its production capacity from 1 lakh to 3 lakh vehicles per annum. The company plans to launch the Cyberster EV, a premium passenger vehicle, early next year in India. Currently, MG Motor sells SUVs under the Hector, Gloster, and Astor brands, as well as the ZS EV and Comet EV models, holding just over 1% market share with two lakh cars sold in India to date.

HBL





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