Asian Paints has decided to enter the adhesives market through a distribution arrangement with Germany’s Henkel Adhesive Technologies.
Under the arrangement, Henkel’s adhesive brand Loctite will be sold at the retail level through a co-branding initiative.
Asian Paints has a distribution network of 36,000 hardware shops.
“Currently we are selling Loctite in certain markets in western India,” an official from Asian Paints has been quoted as saying.
“We have had a B2B presence in the adhesives segment in India. We lacked a retail presence, which Asian Paints will help us overcome through the recently formed distribution arrangement,” an official from Henkel Adhesives has been quoted as saying.
“It will be the first time that we have engaged in a co-branded exercise in the adhesive segment,” the official from Henkel Adhesives adds.
Last year, Henkel AG’s Indian subsidiary Henkel Adhesive Technologies had said that it would invest INR 220 crore (€30 million) to set up the country’s largest adhesives plant, with 80,000 tonnes annual capacity, at Kurkumbh near Pune.