Kansai Nerolac earmarks ₹601 crore for capacity expansion through FY29
Kansai Nerolac’s Q1 net profit rose 4.9% year-on-year to ₹231.5 crore as revenue grew 9.8%. The paintmaker will add industrial paint, powder-coating and resin capacity across Sayakha, Bawal and Hosur to serve automotive demand and deepen backward integration.
What happened
Kansai Nerolac Paints · Kansai Nerolac reported Q1 profit growth on strong decorative, automotive and performance-coatings demand. It approved ₹601 crore of
Key facts
- Consolidated net profit up 4.9% YoY to ₹231.5 crore
- Revenue from operations up 9.8% YoY to ₹2,374 crore
- EBITDA up 8.3% to ₹328.3 crore
- EBITDA margin at 14%
- ₹601 crore cumulative expansion investment
- Industrial paint capacity additions: 1,750 KL/month at Sayakha, 1,625 KL/month at Bawal, 900 KL/month at Hosur
- Powder coating capacity: 1,215 MT/month
- Industrial resin capacity: 815 MT/month
Why this matters
By adding industrial paint, powder-coating and resin capacity, Kansai Nerolac is deepening vertical integration and reinforcing its strategic position in higher-value automotive coatings.
What to watch
- Quarterly industrial-coatings volume growth and management commentary on automotive OEM order wins.
- Capex phasing, commissioning dates and cumulative spend against the ₹601 crore FY29 plan.
- Capacity-utilisation guidance for Sayakha, Bawal and Hosur facilities.
- Gross-margin movement, resin sourcing costs and the share of captive versus purchased resins.
- India passenger-vehicle, commercial-vehicle and auto-component production trends.
- Any increase in depreciation, working capital or net debt before new capacity contributes materially to sales.
- Phase capex releases against confirmed automotive and industrial customer demand rather than commissioning all capacity simultaneously.
- Pursue multi-year supply agreements with OEMs, EV manufacturers and component suppliers near Gujarat, Haryana and Tamil Nadu clusters.
- Use resin integration to expand differentiated low-VOC, corrosion-resistant and EV-component coating formulations.
- Defend decorative-paints dealer investment and marketing spend so industrial capex does not weaken retail-channel competitiveness.
- Track competitor capacity additions and pricing actions in automotive, powder and industrial coatings.