Kansai Nerolac Paints Approves Significant Capacity Additions Across Multiple Plants
Kansai Nerolac Paints Limited has approved several key capacity expansions aimed at bolstering its market presence and meeting growing industry demands. The company’s Board of Directors ratified proposals for adding capacity in Industrial Paints (Auto Paints, ARF-Auto Refinish and Thinner), Powder Coating, and Industrial Resins across its Sayakha, Bawal, and Hosur plants.The expansions are focused on increasing production capabilities across various specialized product lines, supported entirely by internal cash accruals.
Auto Paint Capacity Expansion Details
The company is significantly enhancing the capacity for industrial paints (Auto Paints and Thinner) at three of its major manufacturing sites: Sayakha, Bawal, and Hosur. These additions are planned to be executed in phased manners as part of growth strategies driven by the automotive paint industry.Details regarding the auto paint capacity additions and associated investment requirements are provided below:
| Particulars | Sayakha Plant (Auto Paints) | Bawal Plant (Auto Paints) | Hosur Plant (Auto Paints) |
|---|---|---|---|
| Existing Capacity | 1,973 KL/month | 3,926 KL/month | 2,237 KL/month |
| Existing Utilization (%) | 87% | 95% | 76% |
| Proposed Addition | 1,750 KL/month | 1,625 KL/month | 900 KL/month |
| Investment Required | Rs. 204 Crores | Rs. 14 Crores | Rs. 65 Crores |
| Mode of Financing | Internal cash accruals | Internal cash accruals | Internal cash accruals |
Industrial Resins and Powder Coating Additions
Capacity additions are also planned for the Sayakha Plant, targeting both industrial resins and powder coating capabilities.In terms of Industrial Resins (Industrial Alkyd, Polyester and Acrylic), the company plans to add 815 MT/month to the existing capacity at the Sayakha Plant. This expansion is set to support the increased demand in auto paint and contribute to backward integration within the company. The existing utilization rate for industrial resins at the plant stands at 79%.
For Powder Coating, Kansai Nerolac will add 1,215 MT/month capacity at the Sayakha Plant. This addition is specifically intended to meet market demand in this segment.
The investment and operational details for these additions are summarized as follows:
| Particulars | Sayakha Plant (Powder Coating) | Sayakha Plant (Industrial Resins) |
|---|---|---|
| Existing Capacity | Nil | 852 MT/month |
| Existing Utilization (%) | NA | 79% |
| Proposed Addition | 1,215 MT/month | 815 MT/month |
| Investment Required | Rs. 128 Crores | Rs. 61 Crores |
| Mode of Financing | Internal cash accruals | Internal cash accruals |
The capacity additions for Powder Coating and Industrial Resins at the Sayakha Plant are scheduled to be integrated in a phased manner by the end of FY 2028-29.
KANSAINER Stock Price Movement
Kansai Nerolac Paints Limited shares today edged higher, settling at ₹204.18 after gaining 3.46% in the market. The equity saw robust activity, with a total traded volume of 514,487 shares recorded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.