Asian Paints Announces AED 140 Million Investment for New UAE Facility

Post by : Bianca Suleiman

On Thursday, Asian Paints captured attention as it disclosed its plans for a manufacturing facility in the UAE, as per a regulatory filing made after trading hours on Wednesday.

The company revealed that Berger Paints Emirates Ltd Co, a subsidiary of Asian Paints International Private Limited, Singapore, is set to build its second manufacturing unit in the UAE. For this expansion, an investment of AED 140 million, approximately ₹340 crore, has been outlined.

The newly proposed plant is expected to hold an initial annual capacity of 55,800 kilolitres, sprawled across 100,000 square metres within the Khalifa Economic Zones Abu Dhabi (KEZAD). This facility is integral to the company’s strategy to enhance its international reach.

On Wednesday, shares of Asian Paints slightly dipped by 0.03% to ₹2,875.05 on the BSE, although the stock has appreciated by 14% over the past month due to positive market sentiments.

This announcement follows an earlier update from November 12 regarding delays in domestic expansion. The water-based paint facility in Madhya Pradesh, anticipated to have a capacity of 4 lakh kilolitres per annum and an investment of ₹2,000 crore, will now enter commercial production later than expected.

Initially, operations were to commence within three years from the land acquisition date. However, the Cabinet Committee of Investment Promotion (CCIP), Madhya Pradesh, has now revised the timeline, allowing production to begin within three years of receiving Environmental Clearance (EC). The company confirmed that this rescheduling does not impact previously granted state government incentives.