JSW Paints has earmarked a capex of about Rs 900 crore for the next two years, even as it is readying for an initial public offering (IPO) in the next 3-5 years.
The company, which has posted its first full year of operating profits in FY24 after five years of launch, expects to be net profit positive in FY25.
“So far, we have invested about Rs 800-900 crore in the last five years, and we are looking to invest a similar amount in the next couple of years. The capex would be to increase our capacity by about 50% at our existing locations,” JSW Paints joint managing director and CEO AS Sundaresan told FE.
JSW Paints has two plants — one making decorative in Vijayanagar, Karnataka and an industrial coatings plant in Vasind, Maharashtra — with a total manufacturing capacity of 170,000 kilolitres.
The firm is also setting up another facility in Madhya Pradesh, which would be operational in three years.
The firm would also look at an IPO soon.
“The normal course is to build up certain size and scale, like all JSW Group companies, and then go for an IPO. So, JSW Paints would also go for an IPO, but we have not put a specific timeline for it. I think it should happen over the next 3-5 years,” he added.
The firm’s gross revenues crossed Rs 2,000 crore, while it has recorded operating profits for FY24. “We hope to be PAT positive in FY25, and we are aiming to achieve Rs 5,000 crore in revenues in FY26,” he added.
The firm would also continue to launch new products.
“We are look at revenue of about 10-20% getting added every year from new products. That was how it has been over the last few years, and we will continue that this year also,” he said, the company’s ‘any colour one price’ initiative would continue.
JSW Steel had earlier invested Rs 750 crore in JSW Paints, following which the company holds a 12.84% stake in the paint firm.