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Jotun Paints upbeat on India biz

S. Shanker

Mumbai July 15 Calendar 2008 was best forgotten for most industries thanks to the global slowdown, but Jotun Paints’ operations in India were the exception to the rule.

Decorative paints sales were up 86 per cent at Rs 186 crore as against Rs 100 crore in 2007, while the industrial segment (protective coatings) logged a 75 per cent jump from about Rs 45 crore to Rs 78.75 crore in 2008.

Jotun began production at its Rs 125-crore plant in Pune in March 2008 before which supplies were sourced from its group companies in Singapore and Abu Dhabi.

“We definitely are at an advantage as whatever numbers we get are new,” said Mr Percy Jijina, GM - Decorative, Jotun India, while conceding that the company was not totally insulated from the slowdown impact.

What also worked in its favour was the fact that the paints business gained from the completion stage of real estate projects. Structures were complete with developers looking to hand over possession after having received payments two years ago.

The Norway-based Jotun group has 71 companies and 40 production facilities worldwide. Its operations cover development, production, marketing and sales of various paint systems and products to protect and decorate surfaces in the residential, shipping and industrial markets. In 2008, the group’s total income was Norwegian Krone 11,703 million (about Rs 8,900 crore).

On quality aspects, Mr Jijina said a couple of recent launches such as Jotashield Thermo and Jotashield HB provided a protective edge against natural elements. Thermo, a textured acrylic coating with special glass beads incorporated within, deflects sunlight and reduces heat absorption in interiors. A two per cent degree reduction in temperature works to nine per cent savings in energy consumption of air-conditioners, he said.

To promote its decorative range, Jotun has tied up with Lifestyle International. The walls of the mega lifestyle furniture stores have been coloured to offer customers a look at the wall paint they would like their furniture to go with. The company intends to appoint 100 more exclusive dealers to its existing network of 176 across the country.

Mr Vikas Madan, General Manager, Protective Coatings, said Jotun offers specialised coating products to help increase the lifecycle of offshore installations, power and hydrocarbon processing facilities, windmills, airports and other infrastructure projects. He said some of the company’s products could withstand temperatures ranging from cryogenic to above 650 degree C and it includes cyclic services in temperatures between -185 and 540 degree C.

Related Stories:
Jotun’s paints plant to begin commercial production

More Stories on : Outlook | Paints

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