Tanuj

Shalimar Paints, the third-largest protective coatings supplier in the country, has drawn up plans to enter the real estate turf. The Rs 290-crore company is likely to kick off real estate development projects in Delhi NCR and Kolkata.

Besides exploring a new line of business, Shalimar is taking steps to expand its core paints business. It is in advanced talks to acquire a South India-based paints company with interests in architectural and industrial paints. The deal size is pegged around the Rs 25-35 crore region.

Shalimar Paints executive director & CEO Sandeep Sarda told ET: “Negotiations with a South India-based paints company are at an advanced stage. We hope to ink the deal within the third quarter of 2007-08. The deal size could be in the region of $7 to $ 8 million.” Mr Sarda, however, declined to reveal the identity or capacity of the target company.

“We’ve also sought shareholders’ approval for passing an enabling resolution to foray into the real estate business. We intend setting up residential and commercial complexes. Delhi NCR and Kolkata are two happening areas where we may consider projects in future. But there is nothing on the platter right now.”