According to Asian Paints vice chairman & managing director Ashwin Dani: "Sri Lanka provides a great growth opportunity for Asian Paints. The strength and brand equity of Asian Paints will now be leveraged in the Sri Lankan market."

Along with Gattu, a whole range of Asian Paints' brands - such as Colour World - will make an entry in Sri Lanka. The name of the company acquired has also been changed to `Asian Paints (Lanka) Ltd'. "In just one year, the company is performing well above our expectations and we are confident of achieving a good growth rate in the current financial year," according to Mr Dani. The Sri Lankan company is said to be controlling a 12 per cent share of the paints market. Asian Paints has expanded its operations in the new market through its own depots at Colombo, Galle, Kandy, Kurunegala and Ampara. The company has also revamped its distribution network to bring in efficiencies for quicker response time to market. The company said that it has detailed a new marketing strategy and plans to take the brand to Sri Lanka. It also plans to introduce a wide range of products for various segments of the market. The company intends to create new segments just as it has done in India.

While Asian Paints entered the world market with its product over 30 years ago - it exports its products to 22 markets in the Asia-Pacific region, the Middle East and Africa, and has nine joint ventures - Gattu is present only in India and Nepal. In India, Asian Paints is a market leader in the decorative segment of the paints industry with over 45% market share of the organised paint market. Asian Paints reported a turnover of Rs 1,341 crore in the financial year 1999-2000. It's dealer network is spread across the country in nearly 3,000 towns, with 14,500 dealers.