Asian Paints Mysuru Plant Doubles Its Installed Capacity

Asian Paints announces that their Mysuru Plant installed capacity will reach 6,00,000 KL, almost double the existing capacity. The company took the initiative to meet the current requirements of the company with investments through internal accruals. Asian Paints is among the leading paint manufacturing company in India. The company alone caters to a wider audience in the decorative paints segments. The Indian Paints and Coating market is currently approximately $9.56 Billion, which can grow to $15 billion by 2029. Let us discuss below Asian Paints’ current expansion strategy.

Asian Paints Increases Its Mysuru Plant’s Installed Capacity (Key Pointers)

Asian Paints has one of its plant setups in Mysuru, Karnataka. The plant setup is in such a way that the company can increase its installed capacity in the phases. Thus, the initial production capacity of the plant was 3,00,000 KL per annum. Asian Paints will now increase the installed capacity to 6,00,000 KL, doubling the production and shipping. The plant uses 78% of the installed production capacity of 3,00,000 KL per annum. However, the company plans to exceed the utilisation levels further. Thus, they are announcing this capacity increase.

Asian Paints has spent a good amount on this increase. According to the sources, the company spent around Rs. 1,305 Crore on this project. Asian Paints receives the funding through internal accruals. The company got the approval from Karnataka State Pollution Control Board after which they made the announcement. The company is confident in raising the falling demand for its products. Asian Paints decorative paints volume rises by 10%.

The paint industry had a downfall due to increasing competition with the entry of the Birla Opus. Several companies decreased their prices following Asian Paints to stay strong in the market. Asian Paints mentions that they are working to raise the demand for their products again. As the monsoon is arriving, they expect a recovery. There was a downgrade in the market because of the elections and the shift in demand.

Asian Paints quarterly net profit stood at Rs. 1,275 crore. Apart from that, its revenue was Rs. 8,731 Crore. MD and CEO Smit Syngle is having a positive approach towards the company’s upcoming future. Mysuru Plant will now be able to produce more products and meet the post-monsoon demand. As the monsoon arrives, people prefer to renovate or change the paint of their houses to repair any damages in the monsoon season. Thus, Asian Paints’ extended capacity of the plant will be functional from now on.