PPG & Asian Paints sign new agreement to accelerate coatings growth
PPG Industries and India's largest coatings company, Asian Paints Ltd. (APL), expanded a 14-year relationship to accelerate growth of the companies' non-decorative coatings businesses in India. As part of the new agreement, PPG and APL will restructure their existing non-decorative coatings businesses to expand their current 50-50 joint venture, Mumbai-based Asian PPG Industries (APPG), and to create a second 50-50 joint venture. This restructuring is subject to Indian regulatory approvals and is expected to be completed during 2011. Financial terms were not disclosed. APPG currently serves Indian transportation coatings markets, and this agreement will expand that company's scope to additionally serve India's industrial liquid, marine and consumer packaging markets. The new second venture will serve the protective, industrial powder, industrial containers and light industrial coatings markets. PPG and APL have agreed that PPG will lead APPG and APL will lead the new venture in order to best utilize the companies' respective strengths to capture the growth in Indian markets, including infrastructure development.