JSW Paints announced its intention to explore opportunities in the thriving automotive sector, buoyed by its recent profitability at the operational level. This decision was influenced by the Group?s successful venture into the sector.
Previously, JSW Group, under the leadership of Sajjan Jindal, had disclosed its entry into the automobile segment through a partnership with MG Motors, a Chinese company owned by SIAC Motor.
JSW acquired a 35 per cent stake in the joint venture entity, JSW MG Motors India, with Indian financial institutions, domestic MG Motor dealers, and employees holding 8 per cent, 3 per cent, and 5 per cent respectively. This new investment entails a capital infusion of Rs 50 billion.
AS Sundaresan, Joint Managing Director and CEO of JSW Paints, stated that although the company currently does not engage in automotive coating, it plans to venture into it soon. Moreover, its scope will not be limited to serving the group?s interests but will extend to encompass the entire automotive sector.
In the coating business, JSW Paints prioritizes the entire industry and aims to develop products catering to the industrial segment as a whole. Sundaresan highlighted that JSW Paints was the first Indian company to pioneer technology for coil coating within the country, distinguishing it from competitors who rely on multinational technology to penetrate the Indian market.
Regarding automotive coating, JSW intends to develop its technology internally, but remains open to partnerships if they expedite deployment and capture a larger market share.
Notable players in the Indian automotive paints and coatings sector include Akzo Nobel NV, Berger Paints India, Kansai Nerolac Paints, Nippon Paint (India), and PPG Asian Paints.
Industry estimates predict that the India Automotive Paints and Coatings Market will grow from $ 608 million in 2023 to $911 million by 2028, with a compound annual growth rate (CAGR) of 8 per cent.
With the newly infused capital, JSW MG Motors aims to triple its production capacity to 300,000 vehicles per annum from the current 100,000. The company plans to launch the Cyberster EV, a premium passenger vehicle, in India early next year.
