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ICI Paints to create Rs 1,500-cr corpus for acquisition

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Plans to rapidly increase market share

Hyderabad , Sept. 28

ICI Paints intends to create a corpus of Rs 1,500 crore exclusively for acquisitions in the Indian domestic market. The plan is to rapidly increase the market share, according to Mr Pushkar Jain, Senior Product Manager.

"We are looking at acquisitions in two categories - the small local players and one big company. We are already in talks with three to four companies," Mr Jain said while refusing to divulge any names at the present juncture.

Mr Jain was here to launch `Inspira', the company's new offering, which it claimed was India's first four wall super premium emulsion paint, for the Andhra Pradesh market. The product was officially launched in India in August and has been receiving a good response, he told newspersons here today.

The paint business of ICI India Ltd hopes to end the calendar year 2006 at a level of Rs 800 crore turnover. Of this, decorative paints contribute Rs 550 crore. The overall Indian paint market is of the order of Rs 10,000 crore, with Asian paints, Berger, Nerolac and ICI Paints, being the major players in the organised sector, he said.

The company, which has three manufacturing units in Mohali, Thane and Hyderabad, would be able to meet the growth demands with the existing capacity. In the premium segment, which has an estimated market size of Rs 2,000 crore, the company is number two, and wants to emerge at the top by 2010 with an average growth of 28 per cent in the next three years, he said.

High-end customers

Inspira, is targeted at the high-end customer segments like hotels, big kothis, IT sector, etc. The product would be available in 20 shades. For ICI Paints, a leading international company, India has been the first launch for this product, he said. The company wants to launch a slew of products, one every six months in the premium segment.

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