In a bid to expand capacity, Akzo Nobel India, formerly ICI India that makes Dulux Paints, is in talks with the Madhya Pradesh (MP) government to set up a plant in the state. A memorandum of understanding (MoU) to this effect is expected to be signed soon. The company had, in July, signed an MoU with the Karnataka government for setting up a plant to enhance capacity.
Akzo Nobel has a combined capacity of 88 million litres per annum at present at its Hyderabad, Mohali and Mumbai plants. The company plans to double capacity by the end of 2012, as it prepares to tap a market that has seen a 15% year-on-year growth in demand. Nihal Kaviratne, chairman, BoD, Akzo Nobel India, said, ?Given the growth plans of our company, we are short of capacity. The talks with the MP government are at an advanced stage.?
He added that the company is evaluating further options for capacity expansion to meet the growing market demand. This will include expansion at existing sites as well as greenfield projects.