Asian Paints, the country's largest manufacturer of paints, today announced a temporary closure of its chemicals plant engaged in the manufacture of phthalic anhydride (PAN) at Ankleshwar.
Asian Paints said it was forced to close the plant manufacturing phthalic anhydride, which is used in the manufacture of paints, due to pressure from cheap imports.
Thirumalai Chemicals Ltd, the other manufacturer of phthalic anhydride, has already shut down its plant.
Asian Paints is also nursing a huge inventory as cheap imports have chocked demand for the companies products, company sources said.
The unit is a part of Asian Paint's backward integration strategy and accounts for 2.7 per cent of the total revenue of the company.
The Ankleshwar plant produces PAN for Asian Paint's own use and also sell it to other paint manufacturers.
Asian Paints reported a 30 per cent rise in fiscal first-half sales at Rs2,717 crore and a 21 per cent rise in profit at Rs237 crore.