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Asian Paints
acquires Hawcoplast's powder coating business
India's largest paint maker, Asian Paints, has
acquired the powder coating business of the
Mumbai based Hawcoplast Chemicals for Rs16 Crore.
According to the deal, Asian Paints will have to
pay an additional Rs 5-10 crore for Hawcoplast's
assets, a due diligence for which is underway,
The total deal value, thus could be anywhere
between Rs 21 crore to Rs 26 crore, said sources
Mr. M Rawat Manager - Product
Development, Powder Coatings Asian Paints Ltd.
and Mr Jason, Asian Paints (India) Limited have
provided "India Powder Coating"
further information about the
acquisition
"We have acquired Hawcoplast
powder coatings just recently. Presently we are
in the process of working out the modalities for
integrating their operations with Asian Paints.
As soon as these are through we will be
communicating these to all concerned in the
industry."
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Asian Paints
acquires the Powder Coatings business of
Hawcoplast Chemical Ltd. and its
associates
(Press release)
Mumbai, November 1, 2001 : Asian Paints
(India) limited, India's largest paint
manufacturer, today announced the
acquisition of the powder coatings
business from Hawcoplast Chemical Ltd and
its associates. This is the first
acquisition made by Asian Paints in
India.
Asian Paints (India) Ltd, together with
its subsidiary Asian Paints Industrial
Coatings Ltd has entered into agreement
to acquire the powder coatings business
for Rs. 160 million and value for the net
current assets to be determined on
completion of Due Dilligence from
Hawcoplast Chemicals Ltd and its
associates. The deal between the two
companies was signed today evening in
Mumbai. M/s Enam Financial Consultants
Pvt. Ltd. were the advisors to this deal.
Announcing the acquisition, Mr. Ashwin
Dani, Vice Chairman & Managing
Director, Asian Paints (India) Limited
mentions "This is the fastest
growing segment in the industrial
coatings market registering growth of
around 12 % in the last financial year.
Since our presence in this segment is
marginal, the acquisition will strengthen
our presence significantly. Also since
the powder coatings segment is growing at
a healthy pace, it will fuel growth for
the company's industrial business."
He further adds "The trend that we
have noticed is that other segments like
Can, Coil & OLP (Other liquid paints)
are gradually switching to powder
coatings. It is this trend and available
new opportunities that will ensure a
bright future for Powder coatings."
Hawcoplast Chemical Ltd and its
associates are the pioneers in powder
coating manufacturing in India. It has
one plant at Sarigam (Gujarat)
manufacturing powder coatings. Hawcoplast
Chemical Ltd manufactures the complete
range of powder coatings such as pure
epoxy, hybrid(Epoxy polyester), pure
polyester, structures, novelties and
other functional coatings. The site also
has some scope for expansion in future.
Hawcoplast Chemical Ltd has a Technology
tie-up with Oxyplast Limited, Belgium,
who are among the leading manufacturers
of Powder coatings in the world.
The total industrial paint market is
estimated to be around 58500 kl (excl.
auto) and is valued at Rs. 6600 million
for the last financial year 2000-01. The
major segments in the Industrial coatings
are Protective Coatings, Powder Coatings,
Marine Paints, Can/Coil coatings and
general industrial/other liquid paints.
Industrial business accounts for only 3%
of Asian Paints total business and thus
represents small portion of the overall
sales of the company. In the industrial
coatings segment, Asian Paints is present
mainly in Protective coatings with
marginal presence in marine, coil and
powder coatings. The powder and
protective coatings segment constitutes
around 56% of the total market for
industrial paints(auto not included). The
remaining segments which are largely
technology intensive are also heavily
segmented.
This is Asian Paints third acquisition in
the paints business. The company had
earlier made two overseas acquisitions
when it acquired the second largest paint
company in Sri Lanka in October 1999 and
thereafter in November 2000 acquired the
paints business of Pacific Paints,
Australia.
Asian Paints is India's largest
manufacturer of paints with a turnover of
Rs 14990 million - selling 180,000 MT/KL
of paint in the last financial year. It
is the leader in this industry for over
three decades. It ranks among the top 15
decorative coatings companies in the
world. One of the country's leading
business magazines "Business
Today" in Feb 2001 ranked Asian
Paints as the 'Ninth Best Employer' in
India. Asian Paints has been recognised
as the 'Fourth Most Admired Company'
across industries in India through a
survey carried out by "The Economic
Times" in association with ORG-Marg.
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Asian Paints India
Ltd shows
a decline in net profit
The Indian Lunar calendar is
currently having an Extra month called ADHIK MAAS
(ADHIK: Excess, MASS: month).
The lunar month is almost a day short of a solar
month, these accumulated days total to a full
lunar month in almost three years. Then, one
extra month is added to the calendar to
synchronise lunar and the solar calendar.
This extra months now has it's influence on
business. The financial results of Asian Paints
India Ltd shows a decline in net profit. For the
second quarter ending September 31st, sales
declined by 2.8% while net profit also declined
at the same rate. The main reason for drop in
sales was the "Diwali" ( A festival of
lights) factor which pushed sales into October.
Due to the extra month in the calendar, Diwali
was delayed until mid November.
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China
Coat 2001 A Record
Breaking Event
A
report provided by Ms
Greta Li and Mr Donald
Tang |
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The
5th event of the
CHINACOAT Series of the
exhibition has been held
in Shanghai as scheduled
on November 14-16 2001.
In spite of the fact that
the world has met with
some man made disasters
and severe economic
problems, CHINACOAT has
still broken records this
year.
More than 480 companies
were being represented
and they came from 27
countries and regions.
The total exhibit area
was 10,000 square meter
net.
Our Bar code Visible
Management System has the
following records for the
visitors:
- Total number of
registered visitors was
17341,
- Total number of
domestic visitors
registered was 16,158
- Total number of
overseas visitors
registered including Hong
Kong and Taiwan region
was 1,183.
All these figures once
again confirm CHINACOAT
is the second largest
show in the world.
Our next show, the
seventh in the series
will be held in Guangzhou
on November 13-15 2002.
The CHINACOAT organiser,
Sinostar int'l in Hong
Kong said already 150
direct exhibitors have
confirmed to exhibit
representing some 250
companies.
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Pakistan: National
Tariff Commission urged to levy excise duty on
imported spray paints
(European Coatings
Flash - November 19, 2001)
A local manufacturer of aerosol spray
paints in Pakistan has approached the National
Tariff Commission (NTC) that the local industry
is not in a position to compete with the imported
paints as no Central Excise Duty (CED) is levied
on the imported aerosol spray paints and other
paints whereas the CED at 10 percent of retail
sales price is levied on locally manufactured
paints. Besides, the sales tax is chargeable at
retail price in case of locally manufactured
paints whereas it is charged at C&F price on
the imported paints.
Akzo Nobel: Coatings
under pressure
(European Coatings
Flash - November 05, 2001)
Akzo Nobel the international
pharmaceuticals, coatings and chemicals company,
achieved third quarter net income of EUR 239
million,1% below last year's record EUR 242
million. Total sales for the Company were on a
par with previous year. The results of Coatings
were under pressure. On Akzo Nobel's outlook for
the full year Fröhlich, Akzo Nobel's CFO,
commented: "The slowdown of the economy has
continued and is being further accelerated by the
tragic events of September 11 and their
aftermath. Nevertheless, we expect that net
income will be only slightly below the level of
our record year 2000.Coatings suffering from weak
business climate affected the Coatings business
during the third quarter, even though raw
material prices have continued to come down.
Fröhlich said: "We managed to keep sales on
a par with last year despite the negative
economic developments. Decorative Coatings is
recovering in Europe, but still suffering from
the impact of the economic situation in Turkey.
The industrial activities were affected by the
weaker economies in the United States and
Europe." Car Refinishes managed to maintain
its attractive earnings level. Marine &
Protective Coatings again achieved substantial
growth in sales and earnings.
Report on the Paint
Show in Atlanta
(Mary Scianna,
Editor Coatings E-Newsletter, November 26, 2001)
The 2001 International Coatings Expo (ICE) and
Technology Conference in Atlanta, GA, was a
disappointment for some and a surprising success
for others whom I spoke with at the event.
Attendance was down by about 30 per cent and the
number of exhibitors was down by about 40 per
cent from last year's show. But that's not
surprising given the September 11 attacks and the
continued fear and uncertainty that has been
carried forward.
However, the news from the floor was mixed, as
Coatings found out. Read our report on the ICE
2001 and visit our Web site for a brief review of
some products that were introduced at the event.
The show floor was quieter than years past and
several large players such as Ciba Specialty
Chemicals and Bayer were not present. However,
there were a number of raw material companies
from the Asia Pacific region this year. It's
interesting to note that about five years ago,
most North American raw material suppliers didn't
pay much heed to these newcomers because at the
time it was thought that product quality was
inferior and delivery guarantees inadequate at
best.
But these Asian companies have learned quickly.
They have improved product quality and become
market savvy; many now have North American
distributors representing them in Canada and the
US. They have become strong competitors in the
North American market and will likely be here for
the long term.
There were many business dealings at the show,
but one big news item that emerged during the
show was Rohm and Haas' acquisition of the
flexible packaging adhesives business of
Technical Coatings Co., a subsidiary of Benjamin
Moore & Co.
Rumours circulated that the Federation of Society
for Coatings Technology was considering shifting
ICE to a biennial format. Several large
exhibitors in the past have expressed concerns
about the costs of annual shows. To date, there
has been no official word, but it looks like the
FSCT plans to keep to an annual schedule with a
large Paint Show one year and a smaller regional
event (what type of event is still being decided)
every other year.
Whether the FSCT changes its format remains to be
seen, but one thing is certain: industry trade
shows will change to meet the changing needs of
business.
Coatings bound for space
will improve products on earth
(Coatings E-Newsletter,
November 26, 2001)
Researchers from NASA's Marshall Space Flight
Center in Huntsville, AL, are using coatings to
seek insights into making them and other
materials last longer on Earth.
The coatings are engineered to withstand the
effects of the sun, extreme temperatures and
other elements. The coating samples were flown
220 miles above the earth in July, outside the
space station and unprotected by earth's
atmosphere.
The research is part of the Materials
International Space Station Experiment, a project
that will test the durability of hundreds of
samples ranging from lubricants to solar cell
technologies. The study is a co-operative effort
by the Marshall Center, Air Force Material
Command at Wright-Patterson Air Force Base in
Ohio, Boeing Phantom Works in Seattle and other
NASA centres.
Valspar to close
seven plants
(PRA News of the
Month-November)
Valspar have announced they are to close seven
further plants and partially close four to
eliminate excess capacity following its purchase
of Lilly Industries in December 2000. This will
result in the loss of 5% of its workforce, 350
jobs, and bring total annual savings of USD90M to
USD100M as a result of plant closures. Seven
plant closures have been completed since the
acquisition which were initially intended to
produce cost savings of USD70M. (Chem Eng News,
17 Sept 2001, 79 (38), 15, Chem Week, 19 Sept
2001, 163 (35), 16)
Dupont launches
solventless coating for drinking water service
(PRA News of the
Month-November)
Permatex Protective Coatings, part of DuPont
Performance Coatings, has launched a new coating
for drinking water service which is completely
free of solvents and bisphenol F. This is
believed to be the first such coating meeting
these environmental standards. (Farbe Lack, Oct
2001, 107 (10), 20)
Self-cleaning window
glass from PPG
(PRA News of the
Month-November)
PPG has announced it has developed SunClean glass
that has self-cleaning properties from a
transparent coating of titanium dioxide applied
by chemical vapour deposition. PPG claim that the
TiO2 in the coating reacts with UV light to
create a photocatalytic action that helps loosen
and dissolve dirt. The coating is also
hydrophilic so encourages water to sheer across
the surface and wash away dirt. The glass will be
available to window makers by the end of the
year. Competing glassmaker Pilkington had earlier
announced a self-cleaning glass also using a TiO2
coating. (Chem Eng News, 3 Sept 2001, 79(36), 15)
Henkel devides
adhesives business
(PRA News of the
Month-November)
Following the sale of its speciality chemicals
operation and the impending transfer of its
interest in the Henkel-Ecolab joint venture to
Ecolab, Henkel is to restructure its adhesives
business. The business is to be separated into
consumer and industrial lines, the latter to be
known as Henkel Technologies in a new business
unit. (Farbe Lack, Oct 2001, 107 (10), 19)
Titanium dioxide
imports by Germany rise to 168000 tonnes
(PRA News of the
Month-November)
Germany is the world's second largest importer of
titanium dioxide, registering a 19% rise in
imports from 142 000 tonnes in 1999 to 168 000
tonnes in 2000. Import volumes rose further
during 2001, although titanium dioxide prices
moderated during this period. Farbe Lack, Oct
2001, 107 (10), 116)
Powder Coating
training course in the pipeline
(PRA News of the
Month-November)
PRA is currently in the process of establishing a
training course on "An Introduction to
Coating Powders and their Application. The course
will cover formulation and manufacture, end use
and application, substrate pre-treatment, curing,
testing and health and safety aspects of powder
coating. This course, like all other PRA courses,
can also be run at your company's site, if
required.
EXHIBITIONS AND
CONFERENCES IN December 2001
2ND INTERNATIONAL
SYMPOSIUM ON POLYIMIDES AND OTHER HIGH
TEMPERATURE POLYMERS: SYNTHESIS, CHARACTERIZATION
AND APPLICATIONS
3-5 December 2001,
Newark, USA
For further information, please contact Robert H
Lacombe, MST Conferences, 3 Hammer Drive,
Hopewell Junction, NY 12533, USA. Tel: + 1 845
226 1393; Fax: + 1 212 656 1016; E-mail: rhl@mstconf.com or
visit www.mstconf.com/polyimid2.htm
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