Norwegian paint’s new unit to be operational by April

Pune: Norwegian paint manufacturer Jotun Paints has set up its first manufacturing facility in India at Ranjangaon for wet paints and powder coatings.

The plant that has involved an investment of Rs 100 crore, will become operational by April and will have the capacity to manufacture 50 million litres of paint and 10,000 tonnes of powder. The company has provided for expansion at the present location and can double the present installed capacity, if necessary, Mr Morton Fon, President and CEO, Jotun Group, said. He said that an existing powder factory at Daman will be closed and the machines moved to the new facility.

Production from the Ranjangon unit will serve the needs of the domestic market, and will be retailed through exclusive Jotun brand shops. The company, which already has a presence in the country with 84 marketing outlets, is increasing this number to 125 by the year-end, Mr Fon said.

Huge market potential:

Stating that India was an important market, he said, “We are here not because of cheap labour, but because of the huge potential in a market that is growing at 15 per cent annually.” Segments such asdecorative paints and marine and industrial coatings are expected to be growth drivers. The expected revenue from the Pune unit this year is around $28 million, of which 20 per cent will come from powder coatings. “We will look at capturing 8 per cent market share by 2010,” Mr Claes Jansson, Managing Director, Jotun Paints India, said.

The $2-billion Jotun group, which is headquartered in Sanderfjord, Norway, has more than 40 manufacturing facilities worldwide. The group is investing $100 million a year in setting up new facilities in Pakistan, Libya, Turkey, Korea, Brazil and Russia over the next few years, Mr Fon said.