Siddhika Coatings proposes 67:33 premium coatings venture

Siddhika Coatings Limited signed a November 4, 2026 memorandum of understanding to pursue an Indian premium construction and architectural coatings venture, proposing a 67% equity subscription while Mizutani Paint Co. Ltd. proposes 33%. The preliminary subscription is planned in two phases, although the filing gives no capital amount or completion schedule.

What did Siddhika Coatings agree with Mizutani Paint?

Siddhika Coatings agreed on November 4, 2026 to evaluate and establish a proposed joint venture for development, procurement, manufacturing, marketing, distribution and contractual business in premium construction and architectural coatings in India. The document is a memorandum of understanding, or MoU, and describes the equity arrangement as preliminary rather than confirming that a new company has been incorporated.

The proposed activity is limited to the Indian market and premium construction and architectural coatings, rather than all paint categories. The MoU says the development is intended to be non-clashing with Siddhika Coatings’ existing business with SKK, but it does not define the products, territories or commercial arrangements covered by that existing business.

How would the proposed venture's equity be divided?

Siddhika Coatings would subscribe to 67% of the proposed new entity’s equity and Mizutani Paint would subscribe to 33%, according to the November 4 MoU. The parties said the equity subscription would be completed in two phases, but did not disclose the capital amount, timing of either phase or a valuation for the proposed company.

The 67:33 structure assigns the larger proposed equity subscription to Siddhika Coatings, while Mizutani Paint is assigned technology and technical-support responsibilities for premium coatings. The MoU does not state board composition, voting rights, dividend terms, funding obligations beyond the percentage subscriptions, or a deadline for formation of the new entity.

What would Siddhika Coatings and Mizutani Paint each contribute?

Siddhika Coatings would lead the proposed venture’s Indian operational build-out alongside its proposed 67% financial investment. Its listed responsibilities include establishing the new entity, conducting local market research, arranging human resources and research-and-development space, and procuring local factory sites, warehousing and logistics networks.

Siddhika Coatings would also handle necessary Indian regulatory approvals, environmental clearances and certifications. On the commercial side, it would manage local marketing, distribution, contractual operations and sales, assigning the Indian partner the local route to market for premium construction and architectural coatings.

Mizutani Paint would make the proposed 33% financial investment and lead specified technical inputs from Japan. Those inputs include support for research and development, advanced paint-manufacturing technology, formulation development, specialised equipment specifications and quality-control systems for premium coatings.

Mizutani Paint would also secure Japanese regulatory approvals where required, train technical staff and provide technical help from its existing human resources. Its stated marketing role includes support from Japan and in India, plus training assistance for top sales personnel of the proposed new entity; the MoU does not quantify technology fees, equipment spending, training costs or personnel assignments.

What happens to formulas, brands and other intellectual property?

Pre-existing intellectual property remains with the party that owned it before the November 4 MoU. The document specifically lists paint formulations, client associations, trademarks and patents, and says neither Siddhika Coatings nor Mizutani Paint acquires rights to the other party’s pre-existing intellectual property merely through the MoU.

The proposed new entity would receive full branding support from both parties, but the MoU does not require either party to transfer an existing formula, trademark or patent. It says a party may choose, at its own will, to share rights partly or fully with the new entity, leaving any future licence or transfer for later decisions.

The parties also agreed to keep technical paint formulations, commercial strategies and corporate data confidential during discussions. This confidentiality obligation would survive for three years after termination of the MoU, setting a defined period for information shared while the proposed venture is assessed.

How long are Siddhika Coatings and Mizutani Paint exclusive?

The parties agreed to negotiate exclusively for six months from November 4, 2026 and not enter discussions with a third party on a similar construction-paint partnership in India during that period. The six-month restriction can be extended by mutual consent, but the filing gives no automatic extension or date for a final joint-venture agreement.

After formation of the new entity, the MoU states that both parties would not enter a similar business structure in India with another partner for a minimum of 15 years, subject to mutual extension. The clause includes an exception concerning Siddhika Coatings and related arrangements in the Indian market, although the filing does not detail its scope.

Conclusion

The November 4, 2026 MoU sets out a proposed division of investment and responsibilities for an Indian premium coatings business. Siddhika Coatings would provide 67% equity and lead local establishment, regulation, supply-chain arrangements and sales, while Mizutani Paint would provide 33% equity and lead defined technology, formulation, quality-control and training support.

The next disclosed matter is the six-month exclusive negotiation period, which may be extended by mutual consent, followed by potential formation of a new entity. The filing leaves unresolved the two-phase funding amounts and schedule, governance terms, regulatory clearances and whether either party will choose to license or transfer intellectual property to the proposed business.