In a recent file report submitted to stock exchanges, Asian Paints Limited disclosed they had received a letter of allotment for a land area of approximately 166 acres in Pithampur, Madhya Pradesh, to make a new manufacturing plant.
Asian Paints controls almost 50% of the paint market share, and the presence of Asian Paint in the stock market can also be felt. The company has a market cap of more than ₹2.7 lakh crore. The company is in the Nifty 50 index and is the only paint company in the Nifty 50 index.
As per reports, the plant has received a green flag from Madhya Pradesh Industrial Development Corporation Limited, and in the coming three years, the company will complete the manufacturing plant. The new water-based paint will be made with an investment of around ₹2,000 crore and a capacity of 4 lakh kiloliters annually.
After the news breakout in the media, starting company stock surged and saw a high of ₹2,860, around 0.60% high from the last closing price, but as time passed, the stock started seeing the lows of the day and touched ₹2,828 in the afternoon and in the end closed around ₹2,831, around 0.60% lower from the opening price.
Recently, we saw how Aditya Birla Group also announced their entry into the paint industry with their new brand, Birla Opus. According to experts, as people’s purchasing power increases, people will invest more in their home decoration, and industries related to infrastructure like cement and paint will grow.
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