JSW Paints, having achieved operational profitability, is set to venture into the automotive coating sector, buoyed by the JSW Group’s recent entry into the automobile market through a joint venture with MG Motors. This expansion marks a strategic move for JSW Paints as it looks to capitalize on the growing automotive sector.
The Sajjan Jindal-led JSW Group recently announced its foray into the automobile segment in partnership with MG Motors, a subsidiary of Chinese company SAIC Motor. In this joint venture, JSW holds a 35% stake, with Indian financial institutions and domestic MG Motor dealers owning 8% and 3% respectively, and employees holding 5%. This fresh equity investment is expected to result in a capital infusion of ₹5,000 crore.
AS Sundaresan, Joint Managing Director and CEO of JSW Paints, revealed to businessline that while the company is currently not involved in automotive coating, it plans to enter this market soon. The venture will not be limited to serving JSW’s automotive projects but will aim to cater to the entire automotive sector. Sundaresan emphasized that JSW Paints has always focused on serving the broader industry, having been the first Indian company to develop and scale up coil coating technology domestically. Unlike competitors relying on multinational technology, JSW Paints prides itself on its homegrown innovations.
In the automotive coating business, JSW Paints plans to develop the technology in-house but remains open to partnerships if they enable faster market entry and greater market share. This strategic flexibility is crucial as the company aims to compete with established players in the Indian automotive paints and coatings market, including Akzo Nobel NV, Berger Paints India, Kansai Nerolac Paints, Nippon Paint (India), and PPG Asian Paints.
The Indian automotive paints and coatings market is projected to grow from $608 million in 2023 to $911 million by 2028, at a compound annual growth rate (CAGR) of 8%, according to industry estimates. This anticipated growth presents a lucrative opportunity for JSW Paints.
With the fresh capital infusion, JSW MG Motors plans to increase its production capacity from 1 lakh to 3 lakh vehicles per annum. The company is set 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, along with electric vehicles like the ZS EV and Comet EV.
Despite having just over a 1% market share, MG Motor has sold 200,000 cars in India, underscoring the potential for growth. This strategic venture into automotive coatings aligns with JSW Paints‘ broader vision of industry-wide innovation and expansion, setting the stage for its continued growth in the Indian market.
