Berger Paints and Nippon Paints have decided to move much of their automotive paints business in India to BNB Coatings India — a joint venture of the two companies.
Nippon Paint Automotive Coatings Co Japan holds 51% of BNB Coatings India, while the remaining is held by Berger.
The parties have entered into a non-binding understanding, Berger Paints India said.
Berger will contribute “certain business including three wheeler and four wheeler (passenger cars and SUV) paint business” while Nippon will transfer “certain business including four wheeler (other than commercial vehicles, auto parts and
ancillaries) paint business.”
The valuation is yet to be decided.
“The transferred businesses may include transfer of electro coat business also,” Berger said.