Post by : Badri Ariffin

Asian Paints captured attention on Thursday following the announcement of its plan to establish a new manufacturing facility in the United Arab Emirates. This news was disclosed in a regulatory filing after market hours on Wednesday.

The initiative will be executed by Berger Paints Emirates Ltd Co, a subsidiary of Asian Paints International Private Limited, Singapore, which will build its second paint production unit in the UAE. The company has earmarked AED 140 million, approximately ₹340 crore, for this venture.

As per the regulatory update, the new facility will initially have a production capacity of 55,800 kilolitres per year and will occupy 100,000 square meters in the Khalifa Economic Zones Abu Dhabi (KEZAD). This project aligns with the company’s strategy to enhance its footprint in vital international markets.

On Wednesday, Asian Paints' shares closed nearly flat, dipping 0.03% to ₹2,875.05 on the BSE. Despite this minor downturn over the last couple of trading days, the stock has enjoyed a strong 14% increase over the past month, driven by an upbeat market sentiment.

This announcement follows an earlier update on November 12 about delays in some domestic expansion initiatives. Specifically, the firm’s water-based paint facility in Madhya Pradesh, with a proposed capacity of 4 lakh kilolitres and an investment of ₹2,000 crore, is now expected to start commercial production later than planned.

Originally, operations at this project were anticipated to commence within three years of land acquisition. However, Asian Paints has indicated that the Cabinet Committee on Investment Promotion (CCIP) in Madhya Pradesh has approved a modified timeline, permitting the company to start production within three years of obtaining Environmental Clearance (EC). The company reassured that this timeline adjustment will not impact the incentives previously provided by the state government.

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