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<\/p>\nAfter decades of dullness, Shalimar Paints, the oldest paint company in India, is embarking on a journey to regain its sheen.<\/p>\n
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Upgrading plant infrastructure, expanding research and development capacities, and fortifying the supply chain are key focus areas expected to drive product improvements in the decorative and industrial segments.<\/p>\n
Plans are also on the cards to tap into international markets.<\/p>\n
For nearly two decades, Shalimar remained stagnant, but Ashok Gupta, managing director and chief executive officer of Shalimar Paints, says, “Now, things are changing.<\/p>\n
“We have taken up the goal of completely modernising the plants.”<\/p>\n
The investment in the first phase of the plan is Rs 200 crore, which will be completed by 2024-25.<\/p>\n
Modernisation and automation will also increase the capacity, says Gupta.<\/p>\n
The capacity will increase from 6,000 kilolitres (kl) to 26,000 kl per month.<\/p>\n
The manufacturing plants are located in Sikandrabad (Uttar Pradesh), Chennai (Tamil Nadu), and Nashik (Maharashtra).<\/p>\n
However, the Shalimar journey started from Howrah in West Bengal in 1902 when two British gentlemen A N Turner and A N Wright set up a large-scale manufacturing plant.<\/p>\n
The plant was gutted in a fire in 2014, though.<\/p>\n
Around 1990, the company was acquired by Ratan Jindal, who holds more than 30 per cent.<\/p>\n
Hong Kong-based businessman Girish Jhunjhunwala is the other promoter with a 10 per cent holding.<\/p>\n
Early last year, a strategic investor, Hella Infra Market, the parent of Infra.Market, announced an investment of Rs 270 crore through a combination of equity and debentures.<\/p>\n
Infra.Market is a construction solutions company.<\/p>\n
The company is primarily in the building materials sector, says Gupta.<\/p>\n
“They are expanding into all building materials, including paints,” he adds.<\/p>\n
Hella Infra holds more than a 24 per cent stake in Shalimar.<\/p>\n
The investment marked Hella Infra’s entry into the paint sector.<\/p>\n
For Shalimar, it boosted the balance sheet as it seeded newer markets.<\/p>\n
“Today, we serve 240-250 districts; this will increase.<\/p>\n
“The idea is to reach more and more into the hinterland,” says Gupta.<\/p>\n
Shalimar’s plans to reboot the company, however, come at a time when the paint market is becoming crowded.<\/p>\n
In recent years, JSW Group, controlled by Sajjan Jindal, brother of Ratan Jindal, entered the space; Grasim plans to set up six manufacturing plants in India by 2025.<\/p>\n
Others are also eyeing a slice of the market.<\/p>\n
Gupta is banking on the clutter and Shalimar brand recall to make a dent in the market.<\/p>\n
“There was a time when four dominant players (Asian Paints, Nerolac, Berger Paints, ICI paints) existed.<\/p>\n
It was difficult for another player to make its presence felt,” he adds.<\/p>\n
“But with so many players, the market is confused, and the prominence of any single brand is reduced.<\/p>\n
“That gives us an opening. And everyone knows the Shalimar brand,” he adds.<\/p>\n