Asian Paints to invest Rs4,000 crore in new units in Karnataka, Andhra Pradesh

Photo: Mint

Mumbai: Asian Paints Ltd is making an investment around Rs.four,000 crore on putting in productionplant life in Karnataka and Andhra Pradesh, although it has advised that demand conditions inside themodern-day economicnevertheless stay uncertaindue to the worldwide monetary scenario.

Asian Paints chairman Ashwin Choksi said in the modern day annual record that “the employer could bemaking an investment in phases at each those facilities to allow it to carrier the destiny call forproperly”.

The employer has finished the land procurement technique in both the states over the last monetary and has taken ownership of the identified land.

The file stated the employer can be installation a paint production plant with a maximum ability of4,00,000 kilolitres (KL) in stages at Visakhapatnam in Andhra Pradesh at an approximate investment of Rs.1,750 crore. but, on 21 June, it knowledgeable BSE Ltd that “the business enterprise has re-checked out its product portfolio to be synthetic at this proposed manufacturing plant and has decided to revise its plans of setting up of the plant with a maximum capability of five,00,000 kilolitres in keeping with annum, to be positioned up in stages.”

“The approximate amount that could be invested via the organization in phases over a period of 12 years from the date of commencement of production, inclusive of the price of land, would be Rs.1,785 crore,” it said.

further, the document stated, the firm will make investments approximately Rs.2,300 crore toinstallation a production facility with a most potential of 6,00,000 KL in Mysuru, Karnataka.

Over the longer term, the boom capability for the organisation’s various companies is largeparticularly given the huge impetus being put on infrastructure development and urbanisation via adventof smart towns.

we are confident to convert this capacity into fact and as a mark of this self belief, the company has initiated paintings on putting in new manufacturing facilities,” Choksi stated.

but, he recommended that the demand conditions nonetheless continue to be uncertain in monetary2017. whilst the usa keeps to enjoy the benefits of a strong home intake base, it can’t continue to beremoted from the outside international wherein most of the large economies retain to exhibit weakincrease developments.

the advance estimates for a good monsoon are encouraging symptoms and will offer a actual push to the agricultural sector demand, he stated.

at some point of financial 2016, the organization invested assets to enhance its production capacities to be in a function to support the extended destiny call for in a timely manner. The expansionundertaking at Rohtak plant in Haryana to double the potential from the existing 2,00,000 KL consistent with annum to 4,00,000 KL in keeping with annum became efficaciously finished.

The organization might now be specializing in ramping up and stabilisation of output from the Rohtak plant, it stated. The modernisation programme at older facilities at Ankleshwar in Gujarat and Kasna in Uttar Pradesh had been completed in time last 12 months, it introduced.

Post Author: Sristy