Although Subberwal could not be reached for comment, industry sources told The Financial Express that a few more people including marketing chief Tarun Banerjee may also follow suit.

J&N representatives were conspicuously absent at the national paint industry seminar in Calcutta last weekend, an indicator of tensions within the company.

The managing director was said to have developed major differences with the owners, following which he resigned. Sources said Subberwal would have quit in April but decided to quit earlier.

Chairman S P Sinha is said to have taken charge at the moment. Based in Patna, Sinha will be frequenting Calcutta more often. The paint major is yet to recruit a managing director.

The 55-year old Subberwal, almost synonymous with J&N, had served as managing director for the last 16 years. He wasassociated with the company for 24 years, before which he worked with Madura Coates.

Industry sources said that he was instrumental in bringing in new concepts in the paint industry. The concept of computerised tinting systems was pioneered by J&N under its popular brand Instacolour. J&N grew from a Rs 7 crore to a Rs 150 crore company during his tenure.

In the nine months to December 31, 1998, J&N reported a revenue growth of nine per cent, moderate by industry standards. Asian Paints, the industry leader, grew by almost 10 per cent.

The company is studying various options of raising around Rs 60 crore as part of a capital restructuring plan for its colour processing system in the decorative segment. It has already lined up project loans worth Rs 18 crore from Industrial Investment Bank of India and United Bank of India.

The company plans to set up almost 600 Instacolour centres over the next two years, which would mean almost 1000 machines catering to the Instacolour decoratives throughout thecountry.

During the last one year, J&N managed to foil a take-over attempt by the Turner Morrison group, and had gone in for preference shares of Rs 10 crore.