Asian Paints resumes operations in all manufacturing plants; shares rise ~1%

All the company’s operations were disrupted since mid of March 2020 due to Covid-19 outbreak and the company saw partial resumption since early May 2020.

May 26, 2020 01:05 IST India Infoline News Service

Asian Paints
Asian Paints Limited informed the exchanges on Monday that it has now been able to open all manufacturing plants after taking requisite government permissions. The company has also opened about 85% of our warehouses across the country to cater to some of the markets which are opening up.

All the company’s operations were disrupted since mid of March, 2020 due to Covid-19 outbreak and the company saw partial resumption since early May, 2020.

The company said in a release that its business is picking up in few smaller towns and cities slowly and some of the earlier incomplete painting jobs are showing some movement. However, in the metros and Tier 1 cities, the business is slow and, in some cases, yet to pick up due to higher number of red zones, restrictions on movement, lack of labour, strict norms followed by housing societies.

It expects that the demand will pick up once the lockdown restrictions are relaxed.

“All the facilities, which are opening across the company, have been sanitized so that our people are safe and secure. All safety protocols of temperature sensing, wearing of safety gears (masks, goggles, face shields), social distancing, sanitizing and washing hands are being adhered to very stringently,” the company said.

Asian Paints has taken all necessary steps to adhere to the guidelines for social distancing provided by Ministry of Home Affairs. It registered office in Mumbai and most of its sales offices are closed in accordance with the government directives as a precautionary measure.

“The company is well positioned to fulfil its obligations and existing contracts/arrangements. At present, we do not foresee any contracts and agreements which will have significant impact on the business in case of non-fulfilment of obligations by any party,” it added.

Asian Paints Ltd is currently trading at Rs1,633.10, up by Rs15.25 or 0.94% from its previous closing of Rs1,617.85 on the BSE.

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