Asian Paints to invest Rs 1750 crore in new facility in Andhra Pradesh

Asian Paints Limited has signed an MoU with the Andhra Pradesh government for setting up a 400,000 kilo litre capacity plant in north coastal district of Visakhapatnam. Proposed to be developed in phases at an investment of Rs 1,750 crore, the facility would be the largest and most modern compared to the 25 manufacturing plants Asian Paints currently operates, according to Jalaj Dani, president of the company. The combined capacity of the existing manufacturing facilities of the company was around one million kilo litres.
 
The company had negotiated for land and other incentives with both Andhra Pradesh and Karnataka governments and finally settled for a better deal.

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The AP government is giving 110 acres of land to the company at Pudi village in Visakhapatnam apart from promising the reimbursement of 100 per cent of gross value added tax (VAT)/ gross state goods and services tax (SGST) of the eligible capital investment for a period of 12 years from the date of commercial production. These are in addition to the other incentives promised in the industrial policy of the undivided AP.
 
The new plant would help in catering to the eastern market of the country as the Rs 30,000-crore domestic paints business was expected to grow in double digits, according to Jalaj Dani.