CHENNAI: To tap the decorative paint industry, paint manufacturer Sheenlac Ltd today said it has formed a joint venture with another paint maker Jenson and Nicholson.
Sheenlac Paints will hold a 49 percent stake in the newly-formed entity — Jenson and Nicholson Paints Pvt Ltd — while Jenson and Nicholson will hold the majority 51 percent stake. The two companies pooled in Rs 10 crore to set up the venture in the initial phase.
The JV has set a target revenue of Rs 100 crore… he said.
Jenson and Nicholson India Ltd president, Anant Sinha said, “We are excited about the joint venture. Through it, both the companies will sell decorative paints in the domestic market.”
Noting that the decorative paint industry accounts for about Rs 30,000 crore business in the country, Krishnamoorthy said, “As a group, Sheenlac Paints and Jenson and Nicholson Pvt Ltd, we are looking at target revenues of Rs 750 crore.”
“In this joint venture, Jenson and Nicholson are bringing their brand, while Sheenlac Paints is bringing its distribution network”, he added.
Sheenlac Paints has about 15,000 sales touchpoints across India. The company has three manufacturing facilities in Tamil Nadu with a total capacity of 1 lakh kilolitres per year.
Krishnamoorthy said the JV company would serve only the domestic market.