Asian Paints undertakes capex of Rs. 4,000 crore

India’s leading paint maker Asian Paints with market share of more than 40 per cent is undertaking largest capacity expansion at Visakhapatnam and Mysuru. Presently, with six production facilities across the country, the company has 11,30,000 KL per annum. Also, the company has 7,200 MT and 14,000 KL facilities for industrial segment in Taloja, Maharashtra and Sarigam, Gujarat.

The upcoming expansion at Mysuru, Karnataka and Visakhapatnam, Andhra Pradesh will add 6,00,000 KL and 5,00,000 KL to existing facilities. The company is investing around Rs. 4,000 crore for this expansions.

Besides, in its annual report the company stated that after absorbing shock of GST roll-out, it is expecting normalisation of supply chain.

The key concern that overhangs on the company is the northward movement in crude oil prices which is a major raw material for paint makers and forms around 30-35 per cent of the total raw materials cost of the industry.

Along with its focus on the Indian market, the company has presence in 16 countries including Bangladesh, Indonesia, Nepal, Sri Lanka and Singapore contributes around 49 per cent of total international business.