Akzo Nobel India, formerly ICI India, is looking at doubling its production capacity by 2012 under the new leadership. The present chairman Aditya Narayan will pass on the baton to Nihal Kaviratne.
The company, which is geared up for organic and inorganic expansion, has signed a memorandum of understanding with the Karnataka government to set up a plant there.
?We are looking at increasing our production capacity to almost 150 million litres per year,? said Amit Jain, managing director of the company.
At present Akzo Nobel produces around 70 million litres per year across the water based and lead based categories. With the Karnataka plant in operation it will be able to increase its production by 50 million litres per year.
?We are also augmenting our production at the Hyderabad plant. We have decided to increase its capacity by 30 million tonne,? Jain said. he was present at the 56 th annual general meeting of the company. The plant at Hyderabad will be producing water based paints only.
?We are yet to receive land from the Karnataka government. It will not take more than 15 months to complete construction after we receive the land,” he said. Meanwhile, Akzo Nobel is also looking for land in north and central India for greenfield ventures. The company, which has around Rs 900 crore investable surplus, will invest around Rs 130 crore for the Karnataka Project.
In tune with its expansion plans Akzo Nobel is also looking at hiring 180 people during the current fiscal. ?We need people mostly in the distribution network,? Jain said. The company has been investing in the retail modernization programme since last two years under the brand Dulux Decorator Center.
Meanwhile, net profit of the company for the quarter ending June 30, 2010 has come down to Rs 44 crore from Rs 69 crore for the corresponding period last fiscal. Revenue from the paints segment has improved to Rs 280 crore for the quarter from Rs 236 crore for the first quarter last fiscal.