Kansai Nerolac Paints Limited’s Board of Directors has approved substantial capacity expansions across its Sayakha, Bawal, and Hosur manufacturing facilities. These expansions, totaling significant KL and MT additions for industrial paints, resins, and powder coatings, are aimed at addressing the estimated growth in the automotive paint industry and support backward integration. The total investment required for these projects is approximately ₹433 Crores, to be funded through internal cash accruals.
Capacity Expansion Approved for Key Plants
The Board of Directors of Kansai Nerolac Paints Limited, in its meeting held on August 3, 2026, has approved significant capacity additions across its manufacturing units. These strategic moves are designed to bolster the company’s production capabilities in response to anticipated market growth.
Industrial Paints Capacity Enhancements
The company will add capacity for Industrial Paints (including Auto Paints, ARF-Auto Refinish, and Thinner) at the Sayakha Plant by 1,750 KL/month. Additionally, capacity for Industrial Paints (Auto Paints and Thinner) will be increased at the Bawal Plant by 1,625 KL/month and at the Hosur Plant by 900 KL/month. These expansions are planned to be completed in a phased manner by the end of FY 2028-29.
New Segments at Sayakha Plant
The Sayakha Plant will also see an increase in capacity for Powder Coating by 1,215 MT/month and for Industrial Resins (Industrial Alkyd, Polyester, and Acrylic) by 815 MT/month. These additions at Sayakha are driven by market demand for powder coating and the need for backward integration to support the growing automotive paint sector.
Investment and Financing
The total investment required for these capacity expansions is ₹204 Crores for Sayakha (broken down into ₹128 Crores for Powder Coating and ₹61 Crores for Industrial Resins), ₹143 Crores for Bawal, and ₹65 Crores for Hosur, amounting to a total of ₹433 Crores. The company plans to finance these investments through internal cash accruals.
Rationale for Expansion
The rationale behind these significant capacity additions is based on the estimated growth in the automotive paint industry. The expansion is expected to support increased demand, enhance market position, and contribute to the company’s backward integration strategy, thereby ensuring a more robust supply chain and operational efficiency.
Source: BSE
