PPG Industries said Friday that it received necessary approvals from Indian authorities to expand its coatings joint venture and also to create a second joint venture with Asian Paints Ltd. (APL), Indias largest coatings company.
Financial terms were not disclosed.
PPG and APL will expand their current 50-50 joint venture, Mumbai-based Asian PPG Industries, to now serve Indias industrial liquid, marine, consumer packaging and transportation coatings customers.
PPG and APL also will form a second 50-50 joint venture, Asian Paints PPG Ltd., to serve protective, industrial powder, industrial container and light industrial coatings customers, officials said.
The expansion of PPGs more than 15-year successful relationship with Asian Paints will position both companies for accelerated growth in nondecorative coatings to take advantage of the long-term growth of the Indian economy, said Mike Horton, president of PPG Asia Pacific, and vice president of automotive refinish and architectural coatings, Asia Pacific.
Both joint ventures leverage PPGs global scale, technology and customer relationships with APLs Indian customer base, manufacturing footprint, distribution channels and local relationships, according to Horton.
PPG will have effective management control of Asian PPG Industries, and APL will have effective management control of Asian Paints PPG Ltd.