Kansai Nerolac Paints Ltd (KNPL), a key player in India’s paint industry, has announced plans to invest ₹98 crore to enhance its production capacity at its Hosur facility in Tamil Nadu. As a subsidiary of Kansai Paint Co Ltd, Japan, the ₹7,393-crore company expects strong growth in the Indian paint market, spurred by increasing industrialization.
To meet the rising demand, KNPL recognizes that its current production capacities are insufficient, prompting the expansion. The company operates eight factories, including the Hosur plant, and aims to outpace industry growth rates.
KNPL holds a strong position in the Indian paint market, ranking third in decorative paints and leading the automotive and powder coating sectors. The company’s product range includes home interior and exterior paints, mobility solutions, and coatings for appliances and infrastructure.
According to Asit C Mehta Investment Intermediates, KNPL’s business is divided between decorative (55%) and industrial (45%) paint segments. Notably, the industrial segment generates approximately 70% of its revenue from automotive coatings.
The Indian government’s focus on infrastructure development, combined with the robust growth of the consumer durables industry, is expected to fuel demand in KNPL’s high-performance and powder coating segments. With a dominant market share of 58-60% in automotive coatings, KNPL continues to expand its customer base across various industries. The company is also exploring new applications in automotive coatings to broaden its market reach.
KNPL has made significant strides in the electric vehicle (EV) sector. According to Anuj Jain, Managing Director, EV penetration in four-wheelers stands at 2-3%, while in two-wheelers it is around 7-8%. However, the three-wheeler EV market has already surpassed 50% penetration. KNPL’s strong presence in the EV market mirrors its performance in conventional systems, where it continues to maintain a high market share.
Kansai Nerolac Paints, now in its 105th year, has established itself as a pioneer in the paint industry, offering a wide range of high-quality products. As one of India’s leading paint manufacturers and a market leader in industrial paints, the company operates eight strategically located manufacturing units nationwide and boasts a robust dealer network across the country. Kansai Nerolac’s product portfolio includes decorative paints and coatings for homes, offices, hospitals, and hotels, as well as advanced industrial coatings tailored to various industries’ needs.
