Asian Paints Ltd is expanding its non-decorative or industrial paints business through expanding its existing joint venture with PPG Industries Inc, Asian PPG Industries Ltd (APPG). The company is also setting up a second 50:50 joint venture.
The modalities of the new JV are being worked out and, subject to regulatory approvals, it is expected to be completed during the current year itself, the company said in a filing with the Bombay Stock Exchange (BSE).
APPG currently services the Indian transportation coatings markets and the current projects will expand its scope to additionally service the industrial liquid, marine and consumer packing markets. The second joint venture will service the protective, industrial powder, industrial containers and light industrial coatings markets.
"In partnership with PPG, with whom we had a very successful collaboration, APL expects that the partners together will be able to take advantage of the rapidly developing Indian economy and serve all customers for non-decorative products in the India market," said P M Murty, managing director and CEO of Asian Paints Ltd.
"Through this new approach, we will accelerate growth by leveraging PPG's technology and global customer relationships while continuing to build on Asian Paints' customer base, manufacturing footprint, distribution channels and local relationship," he added.
As per the agreement, APL will take the lead in the second venture while PPG will have the lead in the first joint venture APPG in order to derive the maximum out of individual strengths in their respective areas of operation to best capture growth opportunities in infrastructure development in a globally competitive environment.
Asian Paints Ltd also submitted to BSE a copy of the announcement made by its indirect subsidiary, Berger International Limited (BIL), Singapore, which is listed on the Singapore Stock Exchange Limited.