Kansai Nerolac Approves Major Capacity Expansion Across Three Plants, Invests Over ₹600 Crore
Kansai Nerolac Paints Ltd. has approved a significant capacity expansion across its manufacturing facilities in Sayakha (Gujarat), Bawal (Haryana), and Hosur (Tamil Nadu) to cater to the growing demand for automotive coatings, powder coatings, and industrial resins.
The company’s Board of Directors approved the expansion plans at its meeting held on August 3, 2026. The projects will be implemented in a phased manner and are expected to be completed by the end of FY2028-29.
Industrial Paint Capacity Expansion
Kansai Nerolac will substantially increase its industrial paint manufacturing capacity across three plants.
| Plant | Existing Capacity | Capacity Addition | Investment |
|---|---|---|---|
| Sayakha | 1,973 KL/month | 1,750 KL/month | ₹204 crore |
| Bawal | 3,926 KL/month | 1,625 KL/month | ₹143 crore |
| Hosur | 2,237 KL/month | 900 KL/month | ₹65 crore |
The expansion covers the production of automotive paints, auto refinish (ARF), and thinners. The company said the investment is driven by the expected growth in India’s automotive paint industry.
Powder Coating Capacity to be Added
Kansai Nerolac will also establish a new powder coating manufacturing facility at its Sayakha plant.
- Existing Capacity: Nil
- New Capacity: 1,215 MT per month
- Investment: ₹128 crore
The company stated that the new facility will help meet increasing market demand for powder coating products.
Industrial Resin Capacity Expansion
To strengthen backward integration and support rising demand for automotive paints, the company will expand its industrial resin production at Sayakha.
- Existing Capacity: 852 MT/month
- Capacity Addition: 815 MT/month
- Investment: ₹61 crore
The additional capacity will manufacture industrial alkyd, polyester, and acrylic resins, which are key raw materials used in paint production.
Total Investment Crosses ₹600 Crore
The approved projects involve a total investment of approximately ₹601 crore, funded entirely through internal cash accruals.
Investment Breakdown
- Industrial Paints – Sayakha: ₹204 crore
- Industrial Paints – Bawal: ₹143 crore
- Industrial Paints – Hosur: ₹65 crore
- Powder Coating – Sayakha: ₹128 crore
- Industrial Resins – Sayakha: ₹61 crore
Total Investment: ₹601 crore
Strategic Rationale
The expansion is aimed at strengthening Kansai Nerolac’s manufacturing capabilities in high-growth product categories. According to the company, the investments will:
- Support increasing demand from the automotive paint industry.
- Expand its presence in the powder coating market.
- Enhance backward integration through higher in-house resin production.
- Improve production efficiency and support long-term growth.
Once completed by FY2028-29, the expanded capacities are expected to strengthen Kansai Nerolac’s ability to meet growing domestic demand while enhancing operational efficiencies.