The Telegraph
Since 1st March, 1999
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ICI goes for a thicker coat

Calcutta, March 28: ICI India, a key player in the decorative paints market, is set to expand production capacity of two manufacturing facilities at Hyderabad and Thane by 20-25 per cent in a year.

The company has appointed AT Kearney — a consultant that has helped the ICI group ramp up production capacity of its plants in Thailand and Malaysia — to advise it on ‘process re-engineering’ at its two plants.

“AT Kearney has been working with us for the last couple of months, and the study is going to go on for a few more months. We should be able to increase the production capacity of the two plants in a year,” said Hina Nagarajan, general manager (marketing) of ICI’s decorative paints division.

ICI uses 75-80 per cent of its production capacity at present. It claims its sales are growing at 17-18 per cent year-on-year as against an industry growth of 9-10 per cent. It hopes to maintain this robust growth over the next few years.

“We are increasing the production capacity of our plants to cope with the robust growth that we envisage in our paints business. This will not, however, entail any significant investment,” Nagarajan added.

Paints is the mainstay of ICI’s business in India, contributing about 60 per cent of its revenues. At present, it controls a 10 per cent share of the decorative paints market, and claims to be the fourth largest in the country after Asian Paints, Berger and Goodlass Nerolac.

Until now, ICI has focused on the premium end of the paints market. But now it is expanding its portfolio of products to be able to cater to a larger market.

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