Asian Paints Ltd on Monday said it will invest Rs 9.6 billion ($127 million) to expand the manufacturing capacity of its facility situated at Ankleshwar in Gujarat.
The company has signed a memorandum of understanding with the Government of Gujarat commencing the proposed expansion of manufacturing capacity of paint from 130,000 KL to 250,000 KL and resins and emulsions from 32,000 MT to 85,000 MT, Asian Paints said in a regulatory filing.
The expansion is to be completed in the next 2-3 years at a total investment of Rs 960 crore approximately on plant and machinery at the current prevailing prices, it added.
“This expansion will be carried out on the existing land owned by the company,” the filing said.
Asian Paints had reported a 28% year-on-year (YoY) fall in consolidated net profit at Rs 5.95 billion in Q2 on the rise in the cost of raw material.