In a strategic move to strengthen its market position, Asian Paints Limited has announced a significant expansion of its Mysuru manufacturing facility. The company has doubled the installed capacity of the plant from 300,000 KL per annum to 600,000 KL per annum, investing approximately Rs. 1,305 crores in the process.
This expansion comes at a crucial time for the Indian paint industry, which is witnessing heightened competition with the recent entry of JSW Paints, backed by the steel giant JSW Group. The move by Asian Paints is seen as a proactive step to maintain its leadership in the market and meet growing demand.
Asian Paints’ decision to expand its Mysuru plant, which was operating at 78% of its previous capacity, underscores the robust growth in the paint sector. The company had initially set up the facility in 2015 with plans for phased expansion, and this latest development brings the plant to its ultimate planned capacity.
Industry experts note that major players in the Indian paint market are rushing to increase their production capabilities. This trend is driven by factors such as urbanization, rising disposable incomes, and a boom in the real estate and infrastructure sectors.
The expansion was funded through internal accruals, highlighting Asian Paints’ strong financial position. The company received necessary approvals from the Karnataka State Pollution Control Board, Bengaluru, before making the announcement.
As competition intensifies with JSW Paints’ entry and aggressive expansion plans from other players like Indigo Paints and Grasim Industries, Asian Paints’ capacity enhancement is viewed as a strategic move to defend its market share and capitalize on the growing demand for paints and coatings in India.
The Indian paint industry, valued at over $8 billion, is expected to continue its strong growth trajectory in the coming years. With this expansion, Asian Paints appears well-positioned to meet the medium-term capacity requirements and maintain its dominant position in the market.