PPG Industries and Asian Paints Ltd. will expand their transportation coatings joint venture and launch a new protective coatings JV in India, the companies have announced.
Asian Paints is India’s largest coatings company. The companies say they will restructure their current 50-50 JV, Mumbai-based Asian PPG Industries (APPG), and create a second 50-50 joint venture.
APPG currently serves Indian transportation coatings markets. The new agreement will expand the company’s scope to India’s industrial liquid, marine and consumer packaging markets. The new second venture will serve the protective, industrial powder, industrial containers and light industrial coatings markets.
Accelerating Coatings Growth
“Consistent with PPG’s strategy to accelerate growth in coatings and emerging regions, this expanded relationship with APL will enable PPG to take full advantage of the rapidly developing Indian economy,” said Viktor Sekmakas, senior vice president, industrial coatings, and president, PPG Asia/Pacific.
Added Mike Horton, vice president, coatings, PPG Asia/Pacific: “Through this new approach, we will leverage PPG’s global scale, technology and customer relationships with Asian Paints’ Indian customer base, manufacturing footprint, distribution channels and local relationships.”
PPG will lead APPG, and APL will lead the new venture “to best utilize the companies’ respective strengths to capture the growth in Indian markets, including infrastructure development,” the companies said.
The restructuring is subject to Indian regulatory approvals and is expected to be completed this year. Financial terms were not disclosed.
Pittsburgh-based PPG (www.ppg.com) serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets in more than 60 countries. Sales in 2010 were $13.4 billion.