Proposed at Chennai and Gurgaon, the units will start production from 2008 and will cater to the decorative and automotive paint segments. Both units will have a minimum capacity of 20,000 tons and will have facilities to scale up to 40,000 tons, according to the company.
In addition to serving the Indian market, the units may also export, primarily in South Asia where Nippon Paint does not have a manufacturing unit.
The company will also set up 50 exclusive retail outlets across India by December, including ten in Chennai, through franchises to market its products and offer consultancy services.
The company's India operations will be called Nippon Paint India. This is a 50-50 joint venture between Nippon Paint Japan and the Singapore-based Nipsea Holdings International.
Nippon India will import a range of decorative paints until the manufacturing units are set up. These include four types of emulsions (interior and exterior) - an enamel, a multi purpose wall primer and an aerosol-based DIY paint.
"South India is the fastest growing market for enamels in India and that is why we are setting up a unit in Chennai," said Ramakanth Akula, vice president, decoratives, Nippon Paint India.