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Thursday, 19 September 2019
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Markets & companies, Coatings market

Asian Paints intends to set up paint manufacturing facility in India

Wednesday, 18 March 2015

Asian Paints Ltd has entered into and signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh, India, to set up a manufacturing facility for paints and intermediates at Pudi Village, Vishakhapatnam District.

Asian Paints intends to set up paint manufacturing facility in India. Source: coonlight/Fotolia

Asian Paints intends to set up paint manufacturing facility in India. Source: coonlight/Fotolia

An amount of approximately EUR 262,5 million would be invested by the company in phases over a period of 12 years from the date of commencement of construction, including the cost of land admeasuring approximately 110 acres, subject to due diligence and obtaining necessary regulatory and other approvals. The maximum capacity of the manufacturing facility would be 4,00,000 kiloliters per annum, which would be achieved in phases. The company would use latest manufacturing concepts to produce paints and intermediates in the plant in an environmentally friendly manner.

Package of incentives

The Andhra Pradesh Government has offered the following package of incentives to the Company for setting up of the aforesaid paints manufacturing plant:

  • Reimbursement of 100% Gross VAT/State Goods and Service Tax (SGST) or similar levy of taxes in the state of Andhra Pradesh for a period of twelve years starting from the date of commercial production, subject to an overall cap of 100% of eligible investments and that the Company achieves 70% of the proposed investment of EUR 262,5 million within a period of five years. Total reimbursement would be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Central Government of India.
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