Asian Paints on Monday announced that it has invested approximately Rs 1305 crore in order to raise the installed capacity of its Mysuru plant to 6,00,000 KL per annum. The company had set up a paint manufacturing plant in Mysuru, Karnataka with an ultimate production capacity of 6,00,000 KL per annum to be implemented in a phased manner with an initial production capacity of 300,000 KL per annum.
The existing capacity utilisation of the Mysuru plant is at around 78 per cent of the installed production capacity of 300,000 KL per annum, it informed in a regulatory filing.
“This is to inform you that the installed capacity of the Mysuru plant has been increased to 6,00,000 KL per annum in order to meet the medium-term capacity requirements of the Company. An amount of Rs 1,305 crore (approx.) has been invested by the company towards the above increase in installed capacity and the same has been funded through internal accruals,” Asian Paints said in a statement.
FMCG firms see rural green shoots, but wage stress weighs
Whirlpool deal may bolster Bosch’s India appliances biz
ITC increases rural reach by 1.3x: Will it boost demand recovery?
Second to none, thrifting set to outpace apparel market
The company has already received the necessary approval from the Karnataka State Pollution Control Board, Bengaluru, for the said increase.
Earlier in May, Asian Paints had reported a 1.8 per cent year-on-year (y-o-y) increase in net profit to Rs 1,256 crore in the quarter ended March 31 (Q4FY24) amid weak demand conditions and downtrading seen in the premium segment. The net profit fell short of street estimates of Rs 1,333 crore. Revenue from operations stood at Rs 8,731 crore. Compared to the year-ago period, revenue was down 0.6 per cent. While volume growth in its decorative paints business stood at 10 per cent, price cuts across product categories dampened revenue growth.
From: financialexpress
Financial News
