Indigo Paints, a medium-sized paint manufacturer, will expand its water-based paints manufacturing capacity at its existing Pudukkottai Facility to take advantage of rising consumption water-based paints in the country. The company had acquired Pudukkottai facility in Fiscal 2016 through the acquisition of Hi-Build Coatings Private Limited.
Presently, Pudukkottai facility has an installed estimated production capacity of 13,658 KLPA and solvent-based enamels and primers, and wood coatings (both solvent-based and water-based) and certain other products are produced at the facility. The company is now planning to set up an additional unit with a capacity of 50,000 KLPA which is expected to be operational during Fiscal 2023.
The total estimated cost of the proposed expansion is Rs 185.55 crore which will be funded through a planned public issue and internal accruals.
The company is also planning to install additional tinting machines with the dealers as the sale of emulsion paints largely depends upon the number of tinting machines with the dealers. The company presently has 4,600 tinting machines and plans to instal additional 3,700 tinting machines over next three financial years at an estimated cost of Rs 44 crore.
As the paints are mostly sold through dealers in India, Indigo plans to increase its dealership network. As at the end of last financial year the company had 11,230 dealers as against Asian Paints 70,000 dealers. The company has presence only in few states and it wants to expand its presence in the coming years.