The Telegraph
Since 1st March, 1999
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Shalimar Paints in talks to rope in overseas ally

Calcutta, Nov. 12: Shalimar Paints plans to enter into a strategic alliance with a foreign major. Senior officials say it is in talks with two foreign companies at present.

Though Shalimar Paints president Asim Mukherjee refused to elaborate on its proposed tie-up, he did not rule out the possibility of its foreign partner acquiring a strategic stake in the company. He said various options were being considered. He clarified that the arrangement could be limited to technical collaboration as well.

Shalimar Paints is also planning to acquire a manufacturing facility in the south. The company could invest up to Rs 50 crore in it, Mukherjee said.

The management of the beleaguered paints company, Jenson & Nicholson, had approached Shalimar Paints for an alliance, but the latter was not interested in the proposal.

Besides the south, Shalimar Paints is trying to strengthen its position in the Northeast. “We are seeking to corner at least 15 per cent of the Rs 125-crore market in the Northeast in the next two years,” Mukherjee said. The company controls 5 per cent of the domestic paints market.

Speaking on the company’s performance this year, Mukherjee said Shalimar Paints was expecting a 15 per cent growth in sales. In the financial year that ended in June 2003, the company earned Rs 160 crore in revenues.

In the first quarter of its current financial year, it earned revenues worth Rs 39 crore against Rs 36 crore in the corresponding period last year. Profit during the quarter was Rs 70 lakh against Rs 61 lakh in the year-ago period.

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