Asian Paints to set up emulsion unit in Rohtak

Asian Paints, the country's largest paints company, has chosen Rohtak in Haryana to set up a new manufacturing facility, which will be its biggest.

The plant, which will produce emulsion paints initially and then diversify into other products, is expected to be fully operational by the end of 2009.

Ashwin Dani, vice chairman & MD, told analysts today that the company's existing capacities were unable to keep pace with the rising sales, up 23 per cent in the first quarter of this financial year compared with the same period a year ago.

Refusing to give investment details for the new plant, Dani said the capacity of the company's largest unit at Sriperumbudur in Tamil Nadu will be doubled to 1 kiloliter by the end of this financial year.

Asian Paints also plans to invest Rs 200 crore for capacity expansion and its R&D centre in Turbhe near Navi Mumbai in view of the good growth in industrial and decorative paints. The distribution centres and the storage facility will also be increased substantially before the festive season sets in.

Company executives said while the second quarter might see some sales slowdown due to the rains, things would be much better in the third quarter since it coincides with the festive season.