Asian Paints, the country’s largest paints manufacturer, will invest Rs 2,000 crore to set up a water-based paint manufacturing facility with a capacity of 4 lakh kilolitre per annum.
The company is exploring the possibility of setting up the manufacturing facility in Madhya Pradesh, subject to grant of government incentives and other approvals and clearances. The facility is expected to be commissioned in three years, after acquisition of land, Asian Paints said in a regulatory update on Saturday.
Asian Paints’ board had approved the proposed investment at its board meeting held on Friday, it said.
At present, Asian Paints has a total production capacity of 1,700 million litre per annum (MLPA).
Earlier in October, Asian Paints earmarked a capex of about ₹6,750 crore spread over the next three years, which included ₹3,400 crore for capacity addition, ₹2,550 crore for backward integration and ₹800 crore for acquisitions. The ₹2,000-crore investment to set up a water-based paint manufacturing facility is in addition to the earlier capex plans.
The company had also announced plans to also invest about ₹2,650 crore for manufacturing key raw materials including Vinyl Acetate Ethylene Emulsion (VAE) and white cement. Separately, the company had also entered into a deal to acquire a majority stake in Harind Chemicals and Pharmaceuticals. In addition, the company had also signed an agreement to set up a joint venture for manufacturing of white cement and white cement clinker.
The competition in the Indian paints segment is set to intensify, after Aditya Birla Group’s flagship company Grasim Industries, announced plans to invest Rs 10,000 crore for its paint foray by FY25. Grasim’s investment announced in May last year was double of what was initially earmarked when the firm announced its entry into the sector in January last year.
Earlier in October, Asian Paints earmarked a capex of about Rs 6,750 crore spread over the next three years, which included Rs 3,400 crore for capacity addition, Rs 2,550 crore for backward integration and Rs 800 crore for acquisitions. The Rs 2,000-crore investment to set up a water-based paint manufacturing facility is in addition to the earlier capex plans.
The company had also announced plans to also invest about Rs 2,650 crore for manufacturing key raw materials including Vinyl Acetate Ethylene Emulsion (VAE) and white cement. Separately, the company had also entered into a deal to acquire a majority stake in Harind Chemicals and Pharmaceuticals. In addition, the company had also signed an agreement to set up a joint venture for manufacturing of white cement and white cement clinker.
The competition in the Indian paints segment is set to intensify, after Aditya Birla Group’s flagship company Grasim Industries, announced plans to invest Rs 10,000 crore for its paint foray by FY25. Grasim’s investment announced in May last year was double of what was initially earmarked when the firm announced its entry into the sector in January last year.
In 2019, Sajjan Jindal-led JSW Group forayed into the paints segment, starting with coil coatings and offering a complete range of decorative paints. Kansai Nerolac Paints with a production capacity of 583 MLPA, JSW Paints at 125 MLPA and Indigo Paints at 110 MLPA are other major firms in the country.