In order to strengthen its functioning by next four years (2011), Chennai-based Nippon Paint has decided to make an investment of Rs 430 crore in the Indian market.

Yip Wai Meng, Managing Director Nippon Paint (India) Ltd said that the company has already acquired 31 acres of land in Gurgaon to establish its flagship plant in India to make industrial as well as decorative paint.

While launching the company’s odourless premium interior emulsion paint, Mr. Meng said that the company would invest Rs 350 crore in the Gurgaon plant.

“This may happen in phases over a period of three years from now,” Meng said.

He also stated that the company has spent Rs 80 crore up till now in its new green-field manufacturing plant at Sriperumbudur, near Chennai.

The Chennai plant, which will start working from October 2008, will have an annual capacity to make 20,000 kilo litres of decorative paints, and the plant can be rescaled to manufacture another 10,000 kl in the coming time.

It would have a production capacity of 20,000 kilo litres per annum which would be scalable by another 10,000 kilo litres, said Managing Director, Yip Wai Meng.

The company’s new paint contains near zero Volatile Organic Compounds (VOC) and gives a matt finish.

Ramakanth V Akula, Vice-President-Decoratives said, “VOC is found in most conventional paints and is a major source of indoor air pollution. It diminishes air quality and causes health problems. VOC emissions also cause extensive damage to the environment especially to the ozone and increase the rate of global warming due to the greenhouse effect.”

The paint will be promoted via Nippon’s 90 exclusive stores and 60 multi-brand outlets in the South. Nippon plans to double these outlets in the existing year.