Asian Paints infuses Rs.1,305 crore to augment the capacity of its Mysuru Plant

The largest paint manufacturer in India, Asian Paints announced that it has infused nearly Rs.1, 305 crore via internal accruals towards the surge in fixed capacity in Mysuru plant.

After getting the approval from Pollution control Board of Karnataka state, the paints maker has expanded the total capacity of Mysuru plant to 6 lakh KL per year from 3 lakh KL per year to cater the medium-term capacity needs of the company.

The current capacity utilization of the Mysuru plant is at about 78 percent of the installed production capacity of 3 lakh KL per annum (actual installed capacity for production), the company stated 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," it added.

Asian Paints clocked a total volume growth of 10 percent for its business in the decorative sector. The ner profit of the company for the quarter has recoded Rs. 1,275 crore, meanwhile the revenue ranges at Rs. 8,731 crore.

The company has also accredited the reduction in the revenue to weak demand conditions and the downtrading seen in the primary segment. The term Downtrading particularly refers to a consumer switching from the highly expensive to more affordable alternatives.

Though, the Managing Director and Chief Executive Officer Amit Syngle stated that the paints maker is determined to pick-up in demand conditions with a promising monsoon forecast.

In the March quarter, the earnings of the Asian Paints declared that it had cut-down the prices by 3.7 percent.