aint maker PPG Industries today said it will form a new joint venture with Asian Paints
, besides expanding the existing one with the firm.
"PPG Industries announced today that it has received the necessary approvals from Indian authorities to expand its coatings joint venture and also to create a second joint venture with Asian Paints Ltd (APL)," the company said in a statement.
The company, however, did not disclosed the financial terms of the proposed JV.
"PPG and APL will expand their current 50:50 joint venture, Mumbai-based Asian PPG Industries, to now serve India's industrial liquid, marine, consumer packaging and transportation coatings customers," the statement said.
Besides, both the firms will form a second 50:50 JV -- Asian Paints PPG Ltd -- to serve protective, industrial powder, industrial container and light industrial coatings customers, it added.
Commenting on the development, PPG Asia Pacific President Mike Horton said: "The expansion of PPG's more than 15-year successful relationship with Asian Paints will position both companies for accelerated growth in non-decorative coatings to take advantage of the long-term growth of the Indian economy."
Both JVs will leverage PPG's global scale, technology and customer relationships along with with APL's Indian customer base, manufacturing footprint, distribution channels and local relationships, he added.
According to the understanding, PPG will have the effective management control of Asian PPG Industries, while APL will have effective management control of Asian Paints PPG Ltd, Horton said.