Asian Paints Ltd on Monday said it is planning to invest Rs 960 crore in its facility situated at Ankleshwar in Gujarat, for the purpose of expansion.
Asian Paints stated in a regulatory filing that it has signed a memorandum of understanding with the Gujarat government to begin the projected expansion of paint production capacity from 1.3 lakh KL to 2.5 lakh KL, as well as resins and emulsions manufacturing capacity from 32,000 MT to 85,000 MT.
The expansion is expected to be finished by the next 2-3 years at a total investment of around Rs 960 crore on plant and machinery at the current prevailing prices, it added.
“This expansion will be carried out on the existing land owned by the company,” the filing said.
Shares of the company closed at Rs 3,144.30 apiece, up 0.04% from its previous day close on NSE.
The Indian paint company reported a 29% decrease in net profit in its earnings report, ending September 2021. Consolidated net profit came down to Rs 605.17 crore in Q2, due to higher expenses, especially input costs.
The company had posted a consolidated net profit of Rs 851.9 crore in the year-ago period. Consolidated revenue from operations in the reporting quarter came in at Rs 7,096.01 crore versus Rs 5,350.23 crore a year ago.