Asian Paints to Launch AED 140 Million Production Facility in UAE

On Thursday, Asian Paints garnered attention following the announcement of plans for a new manufacturing facility in the UAE. This information was disclosed via a regulatory filing after market close on Wednesday.

The company's subsidiary, Berger Paints Emirates Ltd Co., will establish the second paint manufacturing plant in the UAE, committing AED 140 million, equating to approximately ₹340 crore, for this venture.

Per the filing, the new facility will boast an initial production capacity of 55,800 kilolitres annually and will span 100,000 square metres in the Khalifa Economic Zones Abu Dhabi (KEZAD). This development aligns with the company's goal to enhance its footprint in significant international markets.

Asian Paints shares closed slightly down by 0.03% to ₹2,875.05 on the Bombay Stock Exchange on Wednesday. Despite this minor dip over the past two days, the stock enjoyed a robust 14% increase over the last month, buoyed by positive broader market sentiment.

This announcement follows a previous communication on November 12, where the company updated the market about postponements in its domestic growth initiatives. The upcoming water-based paint facility in Madhya Pradesh, which was to produce 4 lakh kilolitres annually with an investment of ₹2,000 crore, has been delayed in its operational start date.

Originally, the project was anticipated to be functional three years post land acquisition. However, Asian Paints obtained approval from the Cabinet Committee of Investment Promotion (CCIP) in Madhya Pradesh for a revised schedule, enabling production to start three years after receiving Environmental Clearance (EC). The firm also reassured that the updated timeline would not affect previously granted state government incentives.