Asian Paints , India's leading paint manufacturer, has unveiled plans for significant expansion and organizational restructuring, demonstrating its commitment to growth and operational efficiency.

New Manufacturing Facility and Increased Capital Expenditure

Asian Paints has announced plans to establish a new manufacturing facility for Vinyl Acetate Monomer (VAM) and Vinyl Acetate Emulsion (VAE) through its wholly-owned subsidiary, Asian Paints (Polymers) Private Limited (APPPL). The facility will be located in Dahej, Gujarat, and will also include an Ethylene storage and handling facility.

Initially estimated at ₹25.60 billion, the project's cost has been revised upwards. The company's board has approved an additional capital expenditure of ₹6.90 billion, bringing the total project cost to ₹32.50 billion. This increase accounts for pre-operative expenses and certain escalations in project costs.

The company plans to fund this ambitious project through a combination of equity funding in APPPL and external debt financing. This strategic investment is expected to strengthen Asian Paints' position in the market and enhance its manufacturing capabilities.

Senior Management Restructuring

In addition to the manufacturing expansion, Asian Paints has announced several changes in its senior management, effective from April 21, 2025:

1. Mr. Joseph Eapen has been appointed as the Chief Executive of Asian Paints International Private Limited (APIPL) and will join the Senior Management Personnel (SMP) of the company.

2. Mr. Rahul Bhatnagar, currently President of Project Sales, R&T, Industrial JVs, and Home Improvement, will take on the additional responsibility of the Supply Chain function. His new designation will be President – Project Sales, R&T, Industrial JVs, Home Improvement & Supply Chain.

3. Mr. Pragyan Kumar, previously Chief Executive of APIPL, will transition to a new role as Senior Vice President - Retail Sales, Marketing and Commercial.

These changes are aimed at optimizing the company's leadership structure and leveraging the diverse experiences of its senior executives.

Board of Directors Update

The company has also announced changes to its Board of Directors:

1. Mr. Jigish Choksi has resigned as a Non-Executive Director, effective March 31, 2025, to pursue his family business and other interests. He will continue to be associated with the company as a member of the Promoters Group.

2. Mr. Ashish Choksi has been appointed as an Additional and Non-Executive Director, effective April 1, 2025, subject to shareholder approval. Mr. Ashish Choksi, son of the late Mr. Ashwin Choksi (erstwhile Chairman of the company), brings with him experience from his roles at Asian Paints and as the Managing Director & CEO of Ricinash Renewable Materials Private Limited.

These strategic moves by Asian Paints reflect the company's focus on expanding its manufacturing capabilities, optimizing its management structure, and ensuring continuity in its board composition. As the company implements these changes, stakeholders will be watching closely to see how they impact Asian Paints' market position and future growth trajectory.

Asian Paints Limited , India's leading paint manufacturer, has announced the completion of its strategic divestment from the Indonesian market. The company has sold its entire stake in its Indonesian subsidiaries for SGD 6.80 million (approximately ₹44.00 crore), marking a significant move in its international business strategy.

Details of the Divestment

Asian Paints International Private Limited (APIPL), a wholly-owned subsidiary of Asian Paints, has finalized the sale of its 100% stake in two Indonesian entities:

1. PT Asian Paints Indonesia (PTAPI)
2. PT Asian Paints Color Indonesia (PTAPCI)

The buyer is Berger Paints Singapore Pte Limited, a subsidiary of Omega Property Investments Pty Ltd., Australia. This transaction, which was initially announced on February 14, 2025, has now been completed as of March 20, 2025.

Financial Implications

The divestment deal, valued at SGD 6.80 million (approximately ₹44.00 crore), represents Asian Paints' complete exit from its Indonesian operations. As a result of this transaction, both PTAPI and PTAPCI have ceased to be subsidiaries of APIPL effective March 20, 2025.

Transaction Details

Strategic Context

This move aligns with Asian Paints' broader strategy to optimize its international portfolio. By divesting its Indonesian business, the company may be looking to focus on more profitable markets or reallocate resources to areas with higher growth potential.

Market Response

The completion of this divestment is likely to be of interest to investors and market analysts, as it represents a significant change in Asian Paints' international footprint. The impact on the company's overall financial performance and future growth strategy will be closely watched in the coming quarters.

Regulatory Compliance

Asian Paints has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that all stakeholders are kept informed about material changes in the company's operations.

Conclusion

As Asian Paints concludes this chapter of its international operations, the focus will now shift to how the company plans to utilize the proceeds from this divestment and its strategy for growth in other markets. Investors and industry observers will be keen to see how this move fits into Asian Paints' long-term global expansion plans and its impact on the company's financial performance in the coming years.