Post by : Bianca
Haleem
Asian Paints' shares caught attention on Thursday following the company's announcement of a planned expansion with a new manufacturing facility in the United Arab Emirates. This news was disclosed through a regulatory filing post-market hours on Wednesday.
The company revealed that Berger Paints Emirates Ltd Co, a subsidiary of Asian Paints International Private Limited in Singapore, will establish its second production site in the UAE. An investment of AED 140 million, approximately ₹340 crore, has been set aside for this project.
According to the filing, the new plant is designed to have an initial capacity of 55,800 kilolitres annually and will span 100,000 square metres within Khalifa Economic Zones Abu Dhabi (KEZAD). This initiative is part of Asian Paints' strategy to enhance its international market presence.
On Wednesday, Asian Paints shares closed nearly flat, dipping 0.03% to ₹2,875.05 on the BSE. Despite this minor decrease over the past two sessions, the stock has seen a robust increase of 14% in the last month, buoyed by improving market sentiment.
This update follows a prior announcement from November 12, where the company indicated delays in its domestic expansion plans. The forthcoming water-based paint facility in Madhya Pradesh, which aims for a capacity of 4 lakh kilolitres per annum and an investment of ₹2,000 crore, will commence production later than initially planned.
Originally slated to become operational within three years from land acquisition, Asian Paints has stated that the Cabinet Committee of Investment Promotion (CCIP) in Madhya Pradesh has approved a new timeline, allowing manufacturing to start within three years upon receiving Environmental Clearance (EC). The company reassured that the scheduling changes will not impact previously granted state government incentives.
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