Berger PaintsBSE -1.08 % India and the Nippon group of Japan have decided to strengthen their 49:51 joint venture for manufacture of coatings for plastic substrates — BNB Coating India. The two have entered into a 'non-binding understanding' to transfer some of their existing automotive paints businesses to the joint venture 'at agreed values'.

While Berger will transfer its three- and four-wheeler paints business (passenger cars and sports utility vehicles), Nippon Paints (India) will transfer its four-wheeler paints business (other than commercial vehicles, auto parts, and ancillaries) to BNB Coating, Berger said this in a mediastatement issued on Tuesday.

Nippon Paint Automotive Coatings of Japan holds 51% of BNB Coatings India. Balance 49 % of the JV is held by Berger. Effective March 31, 2015, the joint venture has been converted into a private limited company from an unlisted public limited company