Two of the world’s biggest paint and coating companies will partner on a new joint venture that will serve India’s vast, and rapidly growing, protective coatings market.
|The partnership is expected to strengthen the coating companies’ market muscle in India.|
PPG Industries and Asian Paints Ltd. also said they would expand their first joint venture, Mumbai-based Asian PPG Industries, which currently serves India's industrial liquid, marine, consumer packaging, and transportation coating sectors.
PPG announced Thursday (July 12) that Indian authorities had approved expansion of the current joint venture and creation of the new one. The new venture will focus on protective, industrial powder, industrial container and light industrial coatings.
Financial terms were not disclosed.
Under the agreements, PPG will have effective management control of Asian PPG Industries, and APL will have effective management control of Asian Paints PPG Limited.
Indian Paints and Coatings
The partnership is expected to greatly strengthen the companies’ market influence in India and the Asia-Pacific region. Pittsburgh-based PPG Industries Inc. is the world’s second-largest coatings company; Mumbai-based Asian Paints is the largest coating company in India and No. 3 in Asia.
"The expansion of PPG's more than 15-year successful relationship with Asian Paints will position both companies for accelerated growth in non-decorative coatings to take advantage of the long-term growth of the Indian economy," said Mike Horton, president, PPG Asia Pacific.
Horton said the ventures would combine PPG's global scale, technology and customer relationships with APL's Indian customer base, manufacturing footprint, distribution channels and local relationships.
The Indian paint industry is over 100 years old, and only recently has foreign domination of that market begun to give way to more local production. According to a 2011 market report, the Indian paint market has the potential to grow by 15% to 20% annually over the next decade.
About the Companies
Asian Paints ranks among the top 10 decorative coatings companies in the world, with subsidiaries in 17 countries; 24 manufacturing facilities; and customers in 65 countries through Berger International, SCIB Paints - Egypt, Asian Paints, Apco Coatings and Taubmans.
Founded in 1883, PPG has global headquarters in Pittsburgh and operates in more than 60 countries around the world. Sales in 2011 were $14.9 billion.