Goodlass Nerolac Paints will be changing its name to Kansai Nerolac Paint to cash in on the brand equity of Kansai and Nerolac.
The Japan-based Kansai Paints Company owns 64.52 per cent of the paid-up share capital of Goodlass Nerolac.
A special resolution to this effect would be placed at the company's 86th annual general meeting on June 12, for approval of shareholders.
The change in name would also be subject to approval of the central government under Section 21 and other applicable provisions of the Company Act, 1956.
The management felt that Kansai, being a major global brand, inclusion of it in the company's name could add a lot of value to the corporate brand as it is associated with quality, technology and global presence.
On the other, brand 'Nerolac' enjoys high awareness among its customers and stakeholders and, hence, taking both the factors into consideration, the company proposed to replace Goodlass with Kansai.
Once the shareholders approve the resolution, application would made to be the central government under Section 21 of the Companies Act, 1956.
Even if the change in name was approved, share certificates in physical forms that had been already issued would not be called in, for the purpose of exchange into certificates bearing the changed name, and the existing certificates would continue to be accepted for the all purpose, indicated the resolution.
According to the contours of arrangement with Kansai, it provides support on process design, quality improvement, technology, which helped the company maintain its position in the industrial business including automotive coatings. Kansai also provides technology for manufacture of architectural coatings.
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