9. Asian Paints Limited

Mumbai, India

91.22.39818990

Managing Director/CEO: Amit Syngle

www.asianpaints.com

2022 Coatings Sales: Approx. $3.5 billion USD (₹29,953.1) for sales ended March 31, 2023

Founded in 1942, Asian Paints is now India’s leading paint company. Asian Paints produces a range of decorative and industrial coatings. The company recorded coatings sales for the period ending March 31, 2023, of ₹29,953.1 Crores. Asian Paints operates in four segments: Decorative, International, Industrial, and Kitchen and Bath. For the period ending March 31, 2022, the Decorative business accounted for 84.2% of revenue, while the International business accounted for a 9% share. In the Industrial business, the company operates through PPG Asian Paints Pvt. Ltd. (a 50:50 joint venture with PPG), which serves the Indian automotive, marine and packaging coatings markets, and Asian Paints PPG Pvt. Ltd., another joint venture with PPG that serves the industrial protective coatings, powder coatings, floor coatings, and road marking coatings markets in India. This segment accounted for 2.8% of the revenue for the period – PPG Asian Paints PVT Ltd. revenues not included). The company’s Kitchen and Bath business accounted for 4% of revenue for the period. Revenue from the Kitchen and Bath business is not included in the coatings sales numbers. The company and its subsidiaries have operations in 15 countries across the world with 26 paint manufacturing facilities. The company serves consumers in over 60 countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans, and Kadisco Asian Paints.

Notes: In October 2022, Asian Paints entered into a binding term sheet for the setting up of a joint venture in Fujairah, United Arab Emirates (UAE), with Riddhi Siddhi Crusher & Land Transport, Fujairah, UAE, Associated Soap Stone Distributing Company Private Limited (ASD), India, and others. The proposed joint venture would be set up with 60:40 partnership between the company and the parties, and would carry out the business of manufacturing and exporting white cement and white cement clinker. Riddhi Siddhi holds mining permits for high-quality limestone mines in Fujairah, UAE, and is a supplier of limestone. ASD (Golcha Group) is one of the trusted suppliers of certain raw materials to Asian Paints.

The initial capacity of the manufacturing facility would be 265,000 tons-per-annum. In addition, clinker grinding units would be set up in India as well. The overall investment would be approximately Rs. 550 crores, to be invested over the next two years. White cement is the key raw material for some of the powder products and undercoats, like putty, which is a leveling powder product for various substrates. At present, the company purchases white cement for manufacturing powder products and undercoats in India. The manufacturing facility proposal is a move towards fulfilling internal white cement consumption, and towards providing white cement as a finished product. This would ensure new opportunities for Asian Paints, as well as both a sustainable cost advantage and an assured supply of good quality raw materials.

Also in October 2022, Asian Paints entered into agreements to acquire a 51% stake in Harind Chemicals and Pharmaceuticals Private Limited from Aapex Power and Industries Private Limited, Swapan Ghosh, Ph.D., and other existing shareholders, subject to completion of the conditions precedent set in the definitive documents.

Asian Paints has also agreed to acquire a further 39% stake in Harind from the existing shareholders, in a staggered manner, over the next five years, subject to fulfillment of certain conditions precedent and achievement of financial targets.

Founded by Ghosh, Harind is a specialty chemicals company built with nanotechnology at its core, primarily in the area of surface coating and care. Harind has been researching, developing, and manufacturing several nanotechnology-based products over the past few years, finding applications across a wide array of industries. Ghosh will continue to lead Harind as the chief executive officer.

In April of 2022 Asian Paints entered into definitive agreements to acquire a 49% stake in Obgenix Software Private Limited (popularly known by the brand name “White Teak”). The company also agreed to acquire the remaining 51% stake in White Teak in a phased manner, wherein 11% stake would be acquired in FY 2023-24 for a consideration based on achievement of certain financial milestones.

Also in April of 2022, Asian Paints entered into definitive agreements with the promoters of Weatherseal Fenestration Private Limited. The agreement is for a 51% stake by subscription to equity share capital of Weatherseal Fenestration, subject to customary closing adjustments and conditions precedent. It is also agreed to acquire an additional 23.9% stake in Weatherseal Fenestration from its promoters, in a staggered manner, over the next three years.

Source: Annual Report, company website, press releases