Asian Paints Ltd recently said that it has invested around ₹1,305 crore through internal accruals towards increase in installed capacity at Mysuru plant.
Post receiving approval from the Karnataka State Pollution Control Board, the paints major has increased capacity of Mysuru plant to 6 lakh KL per annum from 3 lakh KL per annum in order to meet the medium-term capacity requirements of the company.
The existing capacity utilisation of the Mysuru plant is at around 78% of the installed production capacity of 3 lakh KL per annum (original installed production capacity), it said in a stock exchange filing.
“This is to inform you that the installed capacity of the Mysuru plant has been increased to 6,00,000 KL per annum in order to meet the medium-term capacity requirements of the company,” the company said.
Asian Paints saw a volume growth of 10% for its decorative business. Its net profit for the quarter stood at ₹1,275 crore, while revenue came in at ₹8,731 crore.
The paints major had attributed the decline in revenue to weak demand conditions and downtrading seen in the premium segment. Downtrading essentially refers to a customer switching from expensive to more cheaper alternatives.
However, MD and CEO Amit Syngle said that the company is confident of a pick up in demand conditions with a favourable monsoon forecast.
Asian Paints in its March quarter earnings announced said that it had slashed prices by 3.7%.
Source: cnbctv18.com
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