Kansai Nerolac Paints (KNPL) is the second largest coating company in India and a market leader in Industrial Coatings, of which automotive paints constitute the majority. It came into existence in the year 1920 as Gahagan Paints and Varnishes Co. Ltd. and through various changes became a wholly owned subsidiary of Kansai Paints, Japan in 1999. It derives ~55% of its revenues from decorative paint and 45% from industrial paint. Within industrial paint, 75% comes from automotive coatings. KNPL has 4 manufacturing facilities with a capacity of 350,000 MTPA and a network of 94 depots. With the RBI's latest rate cut of 50 bps, we expect a pickup in automobile sales, aided by a slew of new launches. With expansion plans in...