Asian Paints plans Rs 120 cr plant

Pradeep Rane
06 October 2003

Mumbai: Asian Paints, India's largest paint company, is considering setting up a new plant at an estimated cost of Rs 120 crore over the next two years.

Its growth strategy hinges on increasing volumes both in the domestic and international markets through a more comprehensive product portfolio. The company operates 28 paint-manufacturing facilities in 23 countries with a combined capacity of 330 million litres per annum.

The company's management aims to make Asian Paints one of the top five decorative paint companies worldwide by 2007, according to a report by Morgan Stanley. The company initially used the greenfield route but later shifted to acquisitions.

So far, Asian Paints has set up 10 greenfield operations, acquired four companies abroad and absorbed 1,300 workers in the process. Its consolidated revenue was about $450 million in F2003, and its current market capitalisation is $641 million.

Asian Paints is the leader in nine overseas markets. In India, it is the leader in the paint market with a 39 per cent share in F2003. The company is the dominant leader in decorative paints with a 43 per cent share and is the second-largest player in industrial paints. The company's product profile encompasses all segments in the Indian paint market.

Its operations are focused in emerging markets with a presence in South Asia, Southeast Asia, the Middle East and Africa, the report said. The investment in IT infrastructure is almost complete and the colour-tinting machines are now being financed by banks instead of the company.