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Mumbai, India -- In line with its emerging markets growth
strategy, Asian Paints has announced the divestment of its shareholding
in the Mauritius subsidiary, Asian Paints (Mauritius) Limited (APML).
With this effect, the company will exit operations from
Mauritius. Asian Paints holds 89.6 per cent equity in APML. The divestment/transfer
of
shares will be done to a Mauritius based company, subject to necessary
approvals and due
diligence.
"The Mauritius paint market has not been growing
for the past five years and our subsidiary
has been making losses for several years. Further the subsidiary's contribution
to overall
group sales is insignificant. Also in the past few years the portfolio
of the group has been
scaled to over 20 countries and the focus will be on fast growing emerging
markets. It is with
this intention that we have decided to sell our interest in the company"
mentions Mr.
Ashwin Dani, Vice Chairman & Managing Director, Asian Paints (India)
Limited. He
further added "As the Mauritius subsidiary was making losses, the
decision to exit the
country should have a positive impact on the overall international business
in the long run".
After exiting Mauritius, Asian Paints will have manufacturing
facilities in 22 countries with
28 manufacturing facilities spread across the Caribbean, Middle East,
South East Asia, South
Asia and the South Pacific Region. The company is the largest paint company
in 11
countries.
Asian Paints has also announced the setting up of a dedicated
plant for the manufacture of
industrial liquid paints at Taloja, Maharashtra. The first phase of the
project with a capacity
of 8000 KL would involve a capital expenditure of Rs. 148.8 million. The
plant will cater to
the buoyant demand especially from the protective coatings segment. Currently
the industrial
liquid paints are manufactured in the dedicated manufacturing facility
for decorative coatings.
The industrial liquid paint business has been growing
at an average of 30% during last three
years on account of the focus on protective coatings and our foray into
the road markings and
floor coatings segment.
Commenting on the setting up of this plant, Mr. Ashwin
Dani, Vice Chairman &
Managing Director mentions " We are very optimistic about the potential
of the industrial
coatings business and this dedicated manufacturing facility will help
service the changing
requirements of the market. The performance of the business has been very
good. Our
industrial coatings business excluding automotive coatings within the
last few years has
managed to increase its market share to over 10 per cent from around 3
per cent."
Asian Paints is Asia's fourth largest paint company and
India's largest paint company. It is ranked
among the top 10 Decorative Coatings Companies in the world with a group
turnover of INR 22.6
billion (around US$ 513 million). Asian Paints along with its various
subsidiaries has operations
in 22 countries across the world and is the market leader in eleven countries.
Asian Paints has manufacturing facilities in all these
countries viz. India, Australia, Bangladesh, Egypt, Fiji, Nepal,
Oman, Sri Lanka, Solomon Islands, Tonga, Vanuatu, Samoa Islands, China,
Bahrain, Barbados,
United Arab Emirates, Jamaica, Malaysia, Myanmar, Singapore, Thailand
and Trinidad &
Tobago.
Source: Asian Paints
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