"I am confident that despite adverse conditions, the company will maintain the increased growth rate," Sinha said. "Sustaining market volumes is the real clue to success and the continuing success of Instacolour will help us retain its market share in the decorative segment," he added.

The company's fully operational joint venture with Herberts GmbH, Herberts Jenson & Nicholson, has introduced the latest technology for automotive refinish paints. The venture has for the first time set up an information centre in the country to educateapplicators about the proper use of paints.

According to the chairman, the company subsidiary, Jenson & Nicholson (Nepal) Pvt Ltd, continues to do well. The company is working towards building volumes and increasing the number of machines in its decorative Instacolour category. It has started marketing its computer-aided paints in neighbouring countries like Bangladesh.

The company has been able to increase the number of products in this category to eight, the chairman said. The company is finalising various options of raising funds to the tune of Rs 60 crore for the project either through the debt or the equity route. It has already issued Rs 10 crore worth of preference shares.

Priced at Rs 100 each, these shares carry a coupon rate of 14.5 per cent and are redeemable after a five-year period. The issuance of preference shares has raised the company's share capital to Rs 14.39 crore at present. J&N has lined up project loans worth Rs 12 crore from the Industrial Investment Bank of India and the UnitedBank of India. The company's turnover for the year ended March 31, 1998 was Rs 150.28 crore, against Rs 142.15 crore last year. Operating profits clocked a 12 per cent increase to Rs 17.32 crore.