Kansai Nerolac Paints (KNP) has earmarked Rs 400 crore to raise its paint
manufacturing capacity to 2.8 lakh tpa by 2013.
KNP, in which Japan's Kansai Paint Company has 70 per cent stake, has five
manufacturing plants - at Hosur and Perungudi in Tamil Nadu, Jaunpur in Uttar
Pradesh, Lote in Maharashtra and Bawal in Haryana - with a combined capacity of
2 lakh tpa.
Of the total investment, Rs 250 crore is likely to be invested to introduce
the industrial line in Hosur plant. An additional Rs 150 crore will go towards
increasing capacity in four other plants. According to sources, the company has
sufficient cash surplus to take care of the funding requirements and as such,
there is no plan to raise any debt or equity.