Asian Paints to invest Rs 4,000 cr in new units

Asian Paints (NSE: ASIANPAINT, BSE: 500820, ISIS: INE021A01026) has announced that it is about to invest around Rs 4,000 crores to set up two manufacturing plants in Karnataka and Andhra Pradesh, although it has cautioned that demand conditions in the current financial year "still remain uncertain" on account of the global economic situation.

Asian Paints share price has shown a decline of 1.44 per cent to close on Rs 975.30 on NSE (27th June 2016). The share price gave an intraday movement of 22 points approximately with an intraday high of Rs 992.95 and intraday low of Rs 970.25. Asian Paints share price made its 52 week high of Rs. 1037.45 on 7th Jun 16, while the 52 week low of the stock was at Rs. 727.50 made on 29th June 2015.

The Chairman of Asian Paints Mr. Ashwin Choksi said that the company would be investing in phases at both the above mentioned facilities to enable it to service the future demand adequately.The company has completed the land procurement process in both Karnataka and Andhra Pradesh during the last fiscal and has taken possession of the identified land.

The report announced that the company will be set up a paint manufacturing plant with a maximum capacity of 4,00,000 kilolitres (KL) in phases at Visakhapatnam in Andhra Pradesh. This will require an approximate investment of Rs 1,750 crores.The report also added that the firm will invest about Rs 2,300 crore to set up manufacturing facility with a maximum capacity of 6,00,000 KL in Mysuru, Karnataka.

During 2015-16, the company invested resources to augment its manufacturing capacities to be in a position to support the increased future demand in a timely manner.

Asian Paints Financials

The quarter ended December 2015 recorded revenue of Rs 3,423.96 crores. The March quarter saw revenue of Rs 3,219.07 crores, higher by approximately 300 crores as compared to the corresponding quarter of the previous year.

Asian Paints Share Price Outlook

Asian Paints share price closed near its strong support levels of Rs 964.40. A major resistance level of the stock lies at Rs 1000.95. (See more levels at Asian Paints share price forecast). Asian paint is one of the Top 500 shares identified by www.dynamiclevels.com.

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