Chennai-based Sheenlac Paints is planning to ramp up its presence in the eastern and northeastern markets through its recently formed joint venture with the city-used Jenson & Nicolson. In mid-2016, Sheenlac had announced the formation of a special purpose vehicle Jenson & Nicolson Pvt Ltd. While J & N holds 51% of the equity of JNIPL, the balance is with Sheenlac. “J & N is a reputed brand and we will market its decorative paints across eight brands mainly in the eastern and northeastern markets,” CEO, Sheenlac Paints, Mr.Sridhar Krishnamoorthy told The Hindu adding that J&N’s tagline, “whenever you see color, think of us,” still had a vivid recall.
While holding about 35% of the ₹8,000-crore paint market in the South, Sheenlac is hoping to move three notches up from its present No.6 position within the next five years. It has four units in the South with a combined capacity of 1 lakh kilo liters annually.
As for the ailing J & N, only one of the units of India’s second oldest paint company is now operational. This unit, located in Sikandarabad, will also house the new joint entity. While J & N makes decorative and industrial paints, Sheenlac makes decorative paints and wood finishes. The company said that it was the first to introduce thinners in PET bottles.
“Throughout its five decades of existence, Sheenlac has expanded mainly through organic growth… now it sees alliances as the way forward…. This (the JV) was a strategic move to gain traction in markets which are highly competitive like the northeast,” Mr. Sridhar said earlier at a press conference.
Manoj Sood, National Head of Sales, J & N India, said that brand power of JNIL combined with the reach of Sheenlac is expected to result in greater momentum for both the companies.
Mr.Sridhar said that the ₹35,000-crore Indian paint industry is growing between 12% and 13% annually and the low per capita paint consumption at a little over 4 kg had good growth potential.