Nippon Paint India, a subsidiary of Japan-based Nippon Paint Holdings, has announced plans to invest ₹200 crore in India over the next 12–18 months, as part of its strategy to accelerate growth and strengthen manufacturing capabilities.
Sharad Malhotra, Managing Director, Nippon Paint (India) Group, said the proposed investment will be deployed to expand existing manufacturing facilities, create new capacities in emerging segments, and pursue selective acquisitions of companies and production assets.
Capacity Expansion in Emerging Coatings Segments
As part of the expansion strategy, Nippon Paint India plans to build fresh capacities in high-growth segments such as powder coatings and electrodeposition coatings (ED coatings) for the automotive industry. “Currently, our capacity for powder coatings and ED coatings in India is minimal. However, as these categories gain importance, we will need to establish completely new manufacturing capacities domestically,” Malhotra said. The move reflects the company’s intent to align its product portfolio with evolving industry demand and localisation requirements.
Strong Manufacturing Base and Financial Performance
At present, Nippon Paint India operates seven manufacturing facilities across the country, with a combined production capacity of around two lakh tonnes per annum. Malhotra added that the company recorded revenues of ₹3,000 crore in FY25 and commands a market share of approximately 4–5 per cent in the Indian paints market. The company expects to deliver high double-digit growth during the current financial year, driven by capacity additions and market expansion.
Regional Expansion Beyond Southern Markets
The company is now focusing on expanding its footprint in northern and eastern regions. “In terms of geographic expansion, our priority is to strengthen our presence in markets where we see significant headroom for growth,” Malhotra said, underlining the company’s balanced regional growth strategy.
Decorative Coatings Lead Revenue Mix
In terms of business segments, the decorative coatings business continues to be the largest contributor to revenues, followed by automotive refinishing and industrial coatings. Furthermore, Malhotra noted that following its acquisition of Chennai-based Vibgyor Paints, Nippon Paint India has emerged as the largest supplier of paints to the Indian Railways, strengthening its position in institutional and infrastructure segments.
Distribution and Digital Channels in Focus
Mark Titus, President – Decorative Business, Nippon Paint India, highlighted, “Currently, we cover the top 1,000 cities in India. However, we see immense potential in semi-urban and rural markets, and we intend to actively explore these opportunities”. As reported by thehindubusinessline.com, in addition, the company is engaging with app-based home services platforms to integrate Nippon Paint products into their painting and home improvement offerings, thereby strengthening its omnichannel presence.
