Nerolac Paint Forays In Sri Lanka, Enters Into JV Agreement With Maharaja Group

In a bid to exploit the neighbouring overseas markets, Kansai Nerolac Paints Limited (Nerolac Paints) has entered into a joint venture with Capital Holdings Maharaja Pvt Ltd, a subsidiary of Sri Lanka’s based conglomerate Maharaja Group, to foray into the paint industry in Sri Lanka. The new joint venture is valued at 65 crore SLR (Sri Lanka rupees).

“Maharaja group was exploring to enter paints. Nerolac Paints seeks to take advantage of their strong presence in hardware outlets. KNP now intends to start a joint venture by incorporating a company. The equity contribution of KNP in this proposed JV would be 60% amounting to around 39 crores SLR (INR 18.4 Crores),” said the company in a letter to the National Stock Exchange.

It should be noted that Nerolac Paints wanted to invest in Sri Lanka due to the country’s progressive economy. On the other hand, Maharaja Group has presence across sectors in Sri Lanka that includes media, hardware, and FMCG products among others.