Paint major Akzo Nobel is bullish on growth opportunities in India even as it is restructuring its business worldwide.
In April, the Amsterdam-based company had announced that it would separate its paints and chemical businesses in 12 months to unlock shareholder value.
The company has a strong presence in the premium decorative paints segment with its flagship Dulux brand. It is now looking to expand in the mass market.
"We are optimistic about the growth opportunities in India. Over the past five years, the company has invested around Rs 300 crore in building the manufacturing capacity and distribution network. We expect the coatings market to grow 8-11 per cent and the company expects to grow in line or more than the market growth," Jayakumar Krishnaswamy, managing director of Akzo Nobel India, said on the sidelines of the company's annual general meeting today.
The company is still awaiting clarity on the separation of the two business verticals from the global management.
"The details of the separation and how it would be structured is currently being worked out. Once the global structure is clear, we will be able to determine the implications for India. Depending on the route taken, it might require the approval of the shareholders," Akzo Nobel India chairman Nihal Kaviratne CBE said after addressing his last AGM.
Amit Jain, who was the managing director between 2009 and 2013, will take over as the non-executive chairman from August 15, 2017.
Akzo Nobel India has recorded a net profit of Rs 41 crore during the April-June quarter compared with Rs 64 crore in the year-ago period.
A combination of higher input prices and transition to GST had an adverse impact despite a marginal increase in net sales at Rs 783 crore during the quarter from Rs 773 crore in the year-ago period.
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