It has roped in management consultants Booz Allen Hamilton to strategise and implement its growth plans that would increase its turnover threefold to around Rs 3,000 crore. The strategy includes a major thrust in its international operations.

Vice chairman and managing director Ashwin Dani told newspersons: "We are very strong in the decorative paint segment in India and figure among the top 15 companies internationally in the segment. Our target is to figure among the top five."

To achieve its target, the company plans to grow organically in India, while it is planning some acquisitions and greenfield projects in certain developing countries. Asian Paints already has seven subsidairies in south-east Asia and Africa.

Dani said that within the next 15 months, it will beginoperations in Oman and Mauritius. The facility of 2,000 litres per annum in Oman will require an investment of Rs 4 crore only.

"We will try and set up bases in the emerging markets that have a strong growth potential. But nothing as yet has been firmed up," he added. Dani said that may be, in the future, Oman and Mauritius can be used as a hub for export to neighbouring countries.

International operations account for only around Rs 45 crore, or four per cent, to the company's turnover of over Rs 1,000 crore. Dani said that this increase to around 15-10 per cent of turnover within the next five years. That is, the company is targeting a turnover of over Rs 500 crore in the next five years.

For its Indian operations, Asian Paints is also open to joint ventures in specific coatings. It has already forged a joint venture with PPG Industries of the US for auto OEM and refinishes.

The venture was formed after the company's auto refinshes business was transferred to it. The company now wants to set up aseparate manufacturing base near Pune which will have a capacity of close to 10,000 litres annually.

Dani also said that the company was planning to enhance the strength of its established brands, introduce innovative products, open new market segments and increase awareness in the rural areas as part of its strategy to consolidate its leadership position.

Alliance with Sigma Coatings falls through

Asian Paints much-touted tie up with Sigma Coatings of the US to market the latter's marine paints in India has fallen through with the US paints giant deciding to use its Asian region marketing office for the purpose.

Confirming the move, Ashwin Dani, vice chairman and managing director, said: "Sigma carried out a feasibility study and decided that its operation outside India can do the marketing of the product as the market for marine paints is not big enough.

"We did begin to market Sigma's products, but now the tie-up is on the verge of falling through." Asian Paints was the second Indianpaints company to announce a tie-up in marine paints after Jensen & Nicholson announced the first, with Chogoku Marine Paints of Japan.

UK-based paints and chemicals major Courtaulds is already believed to have set up a strong footing in the country, and the lead time gained by it has created an entry barrier.