Bangkok-based global paint major TOA Group would be shelling out close to $100 million (around Rs 460 crore) to have its Indian operations up and running. The investment spread over in five years? time would see the company spanning out pan-India with two manufacturing facilities being set up one each in Tamil Nadu and Gujarat. The paint major, which launched its India operations on Friday in Chennai, would initially import all the products from Bangkok until its first facility in Tamil Nadu goes on stream by 2013. Brijesh Menon, country head, TOA Paint India Ltd told FE,? We are targeting a sales turnover of Rs 150 crore by 2013 and set a target of Rs 500 crore by 2015. We hopefully would have market share of 6% to 8% by 2013?.
The company is in the look out for a suitable location in industrial areas such as Sriperumpudur and Orgadam to set up its Tamil Nadu facility and the investment towards this would be close to $30 million. The one being planned in the western part of the country would be in Gujarat entailing an investment of close to $ 70 million. ?The Chennai facility would provide employment to around 200 people and the Indian head office here would soon be the hub for South Asian and Middle East market?, he said.
Initially, the products are being launched in Chennai only and by December the products will be made available across the state. ?We are planning to reach entire south India in one year?s time and pan-India by 2013?, Brijesh said adding, as far as pricing goes we will be having a price level either at par with our competitor or a tad below it.
He said TOA would be selling ultra-premium eco-friendly paints only in India and products would be offering warranty up to 10 years. It would also be rolling out 6 brands with eco-friendly paint in premium grade including, Supershield, Supershield Duraclean, and Nanosilicon. ?Initailly, we would engage packagers to pack our imported paint products and sell it though our vendor shops,? he added.
The parent company, TOA Group, a Rs 5,000 crore company with 5,000 employees globally, exports to more than 40 countries. Pongcherd Jameekonkal, senior vice president, sales TOA Group said. ?TOA is not only the first company to develop acrylic technology in Thailand but also the only company holds its leadership position in offering a wide range of products in coating indusrty.?