JSW Paints plans to invest Rs 900 crore in capital over the next two years
While preparing for an initial public offering (IPO) in the next three to five years, JSW Paints has set aside around Rs 900 crore for capital expenditures over the next two years.
After five years of inception, the firm reported operational profits for the first time in FY24, and it anticipates making a profit on net sales in FY25.
“In the last five years, we have invested approximately Rs 800-900 crore, and we plan to invest a similar amount in the upcoming years.” AS Sundaresan, the CEO of JSW Paints and joint managing director, told FE that the capital expenditure will be to boost capacity at the company’s current facilities by almost 50%.
With a combined production capacity of 170,000 kilolitres, JSW Paints has two plants: one in Vasind, Maharashtra, that produces industrial coatings, and the other in Vijayanagar, Karnataka, that makes ornamental paints.
In Madhya Pradesh, the company is also building a second plant that will be operational in three years.
The company would shortly consider an IPO as well.
Like with other JSW Group firms, the standard procedure is to reach a particular size and scale before pursuing an IPO. JSW Paints would thus pursue an IPO as well, albeit we do not yet have a timeframe in mind for it. In the next three to five years, I believe that should occur,” he said.
The business generated operating profits for FY24 in addition to total sales that above Rs 2,000 crore. “We are targeting revenues of Rs 5,000 crore in FY26, and we hope to be PAT positive in FY25,” he said.
Additionally, the company would keep releasing new goods.
We anticipate that new items will contribute between 10 and 20 percent to our revenue each year. He declared that the company’s “any color, one price” campaign would go on. “That was how it has been over the last few years, and we will continue that this year also,” he stated.
JSW Steel now has a 12.84% share in JSW Paints after initially investing Rs 750 crore in the paint sector.
