The Denmark—based Hempel Paints today announced setting up of a new manufacturing plant in Nashik, with a production capacity of 10 million litres per year and at an investment of 3 million euros.

“This is one of the fastest growing coatings markets in the world and we expect further growth in the future. We have invested 3 million euros in this new plant and we will invest 2 million euros more in the second phase at the Nashik site. The new plant will help us serve the South Asian market,” Hempel Group president and chief executive Pierre—Yves Jullien told reporters here.

The company already has a 2 million litre plant in Nashik adjoining the new facility.

Hempel Group vice—president for South Asia Umesh Singh said the second phase is likely to be commissioned in the next two years, which will increase the capacity further by 3 million litres.

The new factory will manufacture paint for marine and protective coating segments, and it will also be exported to neighbouring countries of Sri Lanka, Bangladesh, the Maldives and Nepal.

The company enjoys a market share of over 20 per cent in marine coatings and over 12 per cent in the protective coating segment in the country. The protective coating segment is estimated to be around Rs 1,250 crore, while the marine coating market is nearly Rs 250 crore.

The Danish company entered the country in 2010 and has seen a good growth since then. “We would like to double our turnover in the next three years from what it is now,” Singh said.

Singh declined to divulge the turnover from operations here but said it accounts for 1.5—2 per cent of the global sales. Hempel globally had reported a turnover of 1.23 billion euros.

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