SIRCA Paints India will be coming out with an initial public offering through which it is estimated to raise Rs 78 crore. Part of the proposed IPO proceeds will be used to fund a manufacturing facility which the company is setting up at Dist. Sonepat in Haryana. The project is estimated to cost Rs 33.20 crore.
The company is planning to manufacture paints, thinner and polyurethane products in the proposed factory. The proposed plant will have installed capacity to manufacture 3000000 kgs of PU Thinner and 3600000 kgs of NC Lacquers 3600000kgs of melamine and 2000000kgs of Polyurethane products per annum, initially.
At present, the company is engaged in procuring products mainly from SIRCA SPA ITALY through import and selling them in India through its distributors. In addition, the company also procures products like Thinner, Abrasives and Buffing Cream from other suppliers based in India. In February 2018, the company entered into a Manufacturing License Agreement with SIRCA S.P.A. Italy for manufacturing the products that the company is currently distributing under the Product Distribution Agreement. The proposed unit is expected to go on stream during later half of the current financial year.
Incidentally, Sirca Paints is the first company to launch wood filler in India.