Biplab Das 
After achieving operational profitability, JSW Paints is poised to enter the booming automotive coatings market. This decision aligns with the JSW Group’s recent foray into the automobile sector through a joint venture with MG Motors, owned by China’s SAIC Motor.
JSW Group, led by Sajjan Jindal, acquired a 35% stake in JSW MG Motors India earlier this year. Indian financial institutions and domestic MG Motor dealers hold 8% and 3% stakes, respectively, with employees owning 5%. This strategic investment involves a capital infusion of INR 5,000 crore.
New horizons in automotive coatings
AS Sundaresan, Joint Managing Director and CEO of JSW Paints, disclosed plans to venture into automotive coatings. “We currently don’t offer automotive coatings, but we will enter this market soon. Our focus won’t be limited to our group’s ventures but will extend to the entire automotive sector,” he stated. Sundaresan emphasised that JSW Paints’ approach in the coatings business targets the whole industry, aiming to develop products for the broader industrial segment.
In-house technology development
JSW Paints aims to develop automotive coating technology in-house. However, Sundaresan mentioned that partnerships could be considered for faster roll-out and higher market share. “In coil coating, we were the first Indian company to develop the technology domestically and scale it up. All other suppliers in India use technology from multinationals,” Sundaresan noted.
Competitive landscape
The automotive paints and coatings market in India features key players like Akzo Nobel NV, Berger Paints India, Kansai Nerolac Paints, Nippon Paint (India), and PPG Asian Paints. The market is projected to grow from USD 608 million in 2023 to USD 911 million by 2028, at a CAGR of 8%, according to industry estimates.
Expanding production capacity
JSW MG Motors plans to use the fresh capital infusion to increase production capacity from 1 lakh to 3 lakh vehicles per annum. The company is set to launch the Cyberster EV, a premium passenger vehicle, early next year in India. This expansion is expected to boost MG Motor’s market presence and production capabilities.
Current market position
MG Motor currently sells SUVs under the Hector, Gloster, and Astor brands, as well as electric vehicles like the ZS EV and Comet EV models. Despite holding just over 1% of the Indian market share, MG Motor has sold 200,000 cars in India. The increased production capacity and new model launches aim to enhance their market position.
JSW Paints’ entry into the automotive coatings market is a strategic move driven by the JSW Group’s automotive venture. By leveraging in-house technology and potential partnerships, JSW Paints aims to capture a significant share of the growing market. The capital infusion and production capacity expansion at JSW MG Motors reflect the group’s commitment to strengthening its presence in the automotive sector. This move underscores JSW’s broader vision of innovation and market expansion across different industries.
