Kansai Nerolac Paints Limited stands as one of India's largest paints and coatings companies, holding a significant presence in both industrial and decorative paint segments. The company has established itself as the second largest paint coatings company in India and maintains market leadership in Industrial Coatings. Based in Mumbai, Kansai Nerolac is the largest industrial paint and third largest decorative paint company in India, operating as a subsidiary of Kansai Paint of Japan.
The company commands a formidable position in the Indian paint industry with a market share of over 40% in the industrial paints segment, while maintaining a 13% market share in the decorative paints segment. The domestic paint industry is estimated at around ₹75,000 Crore as of March 2024, positioning Kansai Nerolac as a significant player in this substantial market.
Kansai Nerolac's journey began in 1920 when it was established as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Mumbai. The company underwent several transformations over the decades, reflecting its growth and international partnerships. In 1983, Goodlass Nerolac Paints Ltd. strengthened its position by entering technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon Tokushu Toryo Co. Ltd., Japan. By 1986, the company became a joint venture between Tata Forbes and Kansai Paint Co. Ltd., with the Japanese partner acquiring 36% of the share capital.
A pivotal moment came in 1999 when Kansai Paint Company Ltd., Japan took over the entire stake of the Tata Forbes group, making Goodlass Nerolac Paints a wholly owned subsidiary of Kansai Paint Company Ltd. The final transformation occurred in 2006 when the company name was officially changed to Kansai Nerolac Paints Ltd.
Kansai Nerolac operates across multiple segments, demonstrating versatility in serving diverse market needs. The company operates in the paint industry, offering a wide range of products for home, industrial, and automotive sectors. Their main lines of business include decorative paints, industrial paints, and automotive paints.
The company is actively engaged in the industrial, automotive, and powder coating business, developing and supplying paint systems used on finishing lines of electrical components, cycles, material handling equipment, bus bodies, containers, and furniture industries. The product range encompasses interior and exterior wall paints, wood finishes, metal finishes, automotive paints, and protective coatings. Popular brands include Nerolac Impression, Nerolac Excel, Nerolac Beauty, and Nerolac Suraksha.
Kansai Nerolac maintains a robust manufacturing infrastructure with 6 paint manufacturing plants and approximately 6-7 contract manufacturers. The company-owned facilities are strategically located across India: Jainpur, Kanpur Dehat (Uttar Pradesh), Bawal (Haryana), Lote, Chiplun (Maharashtra), Hosur (Tamil Nadu), Sayakha (Gujarat), Goindwal (Punjab), and an upcoming facility in Visakhapatnam (Andhra Pradesh).
Kansai Nerolac commands a market capitalization of ₹20,212 Crore, reflecting its substantial presence in the Indian equity markets. For the quarter ended March 2025 (Q4 FY25), the company reported revenue of ₹1,816.65 Crore and net profit of ₹102.43 Crore. On a consolidated basis, the company reported a profit of ₹102.43 Crore on total income of ₹1,853.74 Crore for Q4 FY25, while for the full year ended 2025, it posted a profit of ₹1,109.33 Crore on total income of ₹8,773.26 Crore.
Key Financial Metrics (FY 2025):
- Revenue: ₹7,823 Crore
- Net Profit: ₹1,109 Crore
- Market Cap: ₹20,212 Crore (as of recent trading)
- Dividend Declared: ₹3.75 per share for FY25
The company's 105th Annual General Meeting approved FY25 financials and declared a dividend of ₹3.75, demonstrating consistent shareholder value creation.
Kansai Nerolac has been awarded the Bronze Medal by EcoVadis for sustainability, recognizing its commitment to creating a more sustainable world. The company has achieved a significant milestone by becoming the first Indian paint company to secure approval for Near-Term Science Based Targets across Scope 1, 2, and 3 GHG Emissions, with ambitions aligned to the 1.5°C trajectory.
The company focuses on delivering technologically innovative products with an emphasis on being eco-friendly and healthy, reflecting its commitment to sustainable manufacturing practices and environmental responsibility.
As a subsidiary of Kansai Paints Co. Ltd Japan, the company continuously receives support and guidance in improving quality standards and accessing the latest technology upgrades. The company has entered into various technical collaborations with industry leaders, strengthening its technological capabilities and product development.
Kansai Nerolac maintains a virtually debt-free status and has consistently maintained a healthy dividend payout of 27.6%, indicating strong financial discipline and shareholder-friendly policies. The promoter holding stands at 74.98% as of March 2025, demonstrating strong backing from the Japanese parent company.
The company's strategic position in the industrial coatings segment, combined with its growing presence in decorative paints, positions it well to capitalize on India's infrastructure development and urbanization trends. With its robust manufacturing base, technological partnerships, and commitment to sustainability, Kansai Nerolac remains well-positioned to maintain its leadership in the Indian coatings industry while exploring new growth opportunities across various market segments.
