The company already has an important and strategic foothold in Bangladesh by way of its on-going and stable technical assistance agreement with Berger Bangladesh for over seven years. It has given the company a strong platform for increasing export of its high-tech products to that country, sources added. The company had earlier acquired Rajdoot Paints in 1998-99.The main aim behind going for acquisitions in Saarc countries and elsewhere was to enhance the company's base in an area of increasing globalisatiion and the gradual reduction of trade barriers, which would provide excellent opportunities in those regions, sources claimed. He said that in view of a number of foreign companies having started operating in India, other international players were poised to enter the Indian market, in the near future, on account of lowering of barriers. The company plans to substantially improve the ratio of operating profit to sales.

In addition, some foreign brands have already been imported into India and in the face of such extensive international competition, which is also set to further intensify, it has become imperative for the company to try and achieve even higher levels of efficiency and competitiveness in all areas, he said. "To attain the goal, we have given special focus on improving the information technology (IT) backbone of the company so as to ensure that it remains competitive in relation to global competition which it is likely to face in the near future," sources added.

The company, which notched a turnover of Rs 505.01 crore last year and recorded a net profit of Rs 23.70 crore, has at present, five factories in the country. The fifth was added only in March last when its Goa factory started full production. It has recently entered into a technical licence agreement with Nippon Paint Company Ltd of Japan. The Japanese company will help it develop and market sophisticated coatings for automotive customers. Another agreement was signed with Orica Australia Pty Ltd in protective coatings to introduce a new generation of coatings.