Asian Paints promoter Satyen A. Gandhi has increased his pledged shareholding in the company, according to a recent disclosure made to the stock exchanges. The move comes as part of a business loan arrangement with Julius Baer Capital (India) Pvt. Ltd.

Key Details of the Pledge

• Shares Pledged: 1,00,000 shares (0.01% of total share capital)
• Pledge Creation Date: September 3, 2025
• Reporting Date: September 6, 2025
• Purpose: Collateral for a business loan

Impact on Gandhi's Shareholding

• Total Shareholding: 37,25,954 shares (0.39% of total share capital)
• Previous Encumbered Shares: 12,91,500 shares (0.13% of total share capital)
• New Total Encumbered Shares: 13,91,500 shares (0.15% of total share capital)

Compliance and Disclosure

The disclosure was made in compliance with the Securities and Exchange Board of India (SEBI) regulations regarding substantial acquisition of shares and takeovers. Asian Paints Limited has the ISIN code INE021A01026.

Promoter Group Holdings

The LODR data reveals that the promoter group of Asian Paints Limited holds a significant portion of the company's shares. Some notable holdings include:

This pledge by Satyen A. Gandhi represents a small fraction of the overall promoter group holdings in Asian Paints Limited.

The move to pledge additional shares for a business loan may be seen as a routine financial transaction within the promoter group. It's important to note that such pledges are common among promoters and do not necessarily indicate any significant changes in the company's operations or strategy.

Asian Paints Limited, India's leading paint and decor company, has announced a significant extension of its joint venture partnership with the PPG Group, a global leader in paints, coatings, and specialty materials. The renewed agreement, which extends the collaboration for an additional 15 years through 2041, underscores the success and strategic importance of this long-standing partnership in the Indian market.

Key Highlights of the Joint Venture Extension

• Duration: The partnership has been extended for 15 years, effective from 2026 to 2041.
• Structure: The existing 50:50 joint venture structure remains unchanged for both PPG Asian Paints Private Limited (PPGAP) and Asian Paints PPG Private Limited (APPPG).
• Management Control: PPG retains management control of PPGAP, while Asian Paints maintains control of APPPG.
• Market Focus: The joint ventures will continue to serve industrial, protective, marine, packaging, automotive, and powder coatings customers in India.

Historical Context and Growth

The partnership between Asian Paints and PPG has a rich history, dating back to 1997 when the first joint venture, PPG Asian Paints Private Limited, was established to service the automotive, refinish, marine, and consumer packaging markets. In 2012, the collaboration expanded with the formation of Asian Paints PPG Private Limited, focusing on the protective and powder coatings market.

Strategic Implications

Amit Syngle, MD & CEO of Asian Paints Ltd., emphasized the strategic importance of this extension, stating, "The extension of our partnership with PPG is a reflection of the strong collaboration and value creation we have achieved over the years. This ongoing partnership will continue to leverage PPG's technological expertise and Asian Paints' deep market understanding and local relationships to meet the evolving needs of the automotive and other industrial coatings market in the growing domestic sector."

Governance and Structure

The renewed agreement maintains the existing governance structure:

• Each joint venture company's board comprises four directors, with each partner nominating two.
• The chairperson of the board is appointed from among the directors nominated by the partner in control of the respective joint venture.
• The right to nominate the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) remains with the respective partners in control of PPGAP and APPPG.

Market Position and Future Outlook

Asian Paints, ranked among the top eight coatings companies globally, reported a consolidated turnover of ₹337.97 billion and a market capitalization of approximately ₹2,276.00 billion. The company's extensive operations span 14 countries with 26 paint manufacturing facilities, serving consumers in over 60 countries.

This strategic extension is expected to further solidify Asian Paints' position in the industrial coatings segment, leveraging PPG's global expertise and Asian Paints' strong local presence. As India's economy continues to grow, this partnership is well-positioned to capitalize on the increasing demand for high-quality industrial coatings across various sectors.

The renewal of this joint venture agreement demonstrates both companies' commitment to the Indian market and their confidence in the continued growth potential of the industrial coatings sector in one of the world's fastest-growing economies.