U.S.-based company acquires Nitco Paints

By SiliconIndia   |   Wednesday, 04 April 2007, 05:00 Hrs
Printer Print Email Email
Mumbai: U.S.-based paints and coating maker Sherwin-Williams Co. has entered the Indian market, by acquiring full ownership of Nitco Paints Pvt. Ltd., which mainly serves western India.

The acquisition, made for an undisclosed amount, would be followed by investment by the American firm in privately owned Nitco's manufacturing and distribution infrastructure, Conway Ivy, Sherwin-Williams Senior Vice President, told reporters.

"We need to understand the Indian market better. We will explore what products and technology we need to bring in," he said. Sherwin-Williams, Ivy said, had drafted an aggressive growth strategy in India. "We are interested in acquisitions in India and will be talking to other companies," he added.

Nitco Paints, which makes exterior paints, reported sales of 800 million rupees in 2006/07, up 25 percent from a year ago, reported a business daily.

Ivy said Nitco, under the U.S. firm, would initially focus on the decorative paint segment, but would later broaden the product line. Indian paint companies have been growing at an average of 15 percent annually, spurred by strong housing and construction demand in a growing economy. The decorative segment is dominated by Asian Paints, India's top paints maker.

"The large growing middle class will drive the paint market to high quality products, which basically fits with our range of products," Ivy said.

SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..