Jan 25 2011
PPG Industries (NYSE: PPG) today announced plans to expand its 14-year relationship with Asian Paints Ltd. (APL), India’s largest coatings company, to accelerate growth of the companies’ non-decorative coatings businesses in India.
As part of a new agreement, PPG and APL will restructure their existing non-decorative coatings businesses to expand their current 50-50 joint venture, Mumbai-based Asian PPG Industries (APPG), and to create a second 50-50 joint venture. This restructuring is subject to Indian regulatory approvals and is expected to be completed during 2011. Financial terms were not disclosed.
APPG currently serves Indian transportation coatings markets, and this agreement will expand that company’s scope to additionally serve India’s industrial liquid, marine and consumer packaging markets. The new second venture will serve the protective, industrial powder, industrial containers and light industrial coatings markets.
“Consistent with PPG’s strategy to accelerate growth in coatings and emerging regions, this expanded relationship with APL will enable PPG to take full advantage of the rapidly developing Indian economy,” said Viktor Sekmakas, senior vice president, industrial coatings, and president, PPG Asia/Pacific.
Mike Horton, vice president, coatings, PPG Asia/Pacific, added, “Through this new approach, we will leverage PPG’s global scale, technology and customer relationships with Asian Paints’ Indian customer base, manufacturing footprint, distribution channels and local relationships.”
PPG and APL have agreed that PPG will lead APPG and APL will lead the new venture in order to best utilize the companies’ respective strengths to capture the growth in Indian markets, including infrastructure development.