Asian Paints invests Rs 1,305 crore in expanding capacity of its Mysuru plant

1 Jul 2024 , 03:05 PM

Asian Paints Ltd., India’s largest paints manufacturer, has invested ₹1,305 Crore from internal accruals to boost installed capacity at its Mysuru plant.

Following approval from the Karnataka State Pollution Control Board, the paints giant raised the capacity of its Mysuru facility to 6 lakh KL per year from 3 lakh KL per year to suit the company’s medium-term capacity requirements.

The Mysuru plant’s current capacity utilisation is approximately 78% of its installed production capacity of 3 lakh KL per year (original installed production capacity), according to a stock exchange filing.

This is to inform that the Mysuru plant’s installed capacity has been expanded to 6,00,000 KL per year to satisfy the firm’s medium-term capacity requirements, the company stated.

Asian Paints’ decorative business experienced a 10% volume growth rate. The company’s quarterly net profit was ₹1,275 Crore, with revenue of ₹8,731 Crore.

The paints major ascribed the sales loss to sluggish demand and downtrading in the premium sector. Downtrading is essentially when a client switches from pricey to less-priced alternatives.

However, MD and CEO Amit Syngle stated that the company is confident of a pickup in demand circumstances due to a positive monsoon outlook.

Asian Paints said in its March quarter profits that it has reduced prices by 3.7%.

Asian Paints develops a comprehensive range of paints for ornamental and industrial applications, as well as waterproofing, adhesives, and services. The company also operates in the Home Decor category, where it sells modular kitchens and wardrobes, as well as bathroom fittings and sanitaryware.

At around 10.48 AM, Asian Paints was trading almost flat at ₹2,918 per piece, against the previous close of ₹2,917.05 on NSE. The counter touched an intraday high and low of ₹2,925, and ₹2,888, respectively.

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