Berger Paints India Ltd said on Tuesday it and the Nippon group of Japan had agreed to strengthen their 49:51 joint venture for manufacture of coatings for plastic substrates — BNB Coating India Pvt Ltd.
Both have now entered into a “non-binding understanding” to transfer some of their existing automotive paints businesses to the joint venture “at agreed values.” Berger said this in a filing to the stock exchanges.
While Berger would transfer its three- and four-wheeler paints business (passenger cars and sports utility vehicles), Nippon Paints (India) Pvt Ltd would transfer its four-wheeler paints business (other than commercial vehicles, auto parts, and ancillaries) to BNB Coating.
The joint venture, during 2014-15, posted a net profit of Rs 4.46 crore. Effective March 31, 2015, the joint venture has been converted into a private limited company from an unlisted public limited company.
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