Asian Paints Forms New Company In Indonesia

Giving wings to its overseas expansion, paint major Asian Paints Limited has forayed into the Indonesian market by launching PT Asian Paints Indonesia. The new company is a wholly-owned subsidiary of Berger International Limited, Singapore, which in turn is an indirect subsidiary of the Asian Paints.

“We will also set up a manufacturing plant with a capacity of 24,550 ton in the country. However, this will be executed only after the company receives the requisite regulatory approvals,” the company told the National Stock Exchange (NSE) in a letter dated January 29, 2015.

The company has also applied for another approval for incorporating another company in Indonesia. “We have also put in a second application for investment approval with Badan Koordinasi Penanaman Modal (BKPM), the Investment Coordinating Board of Republic of Indonesia, for incorporating a second company in Indonesia which will engage in import of finished goods including decorative paints, other coatings and related items for sale in Indonesia. BKPM has issued a principal license approving the said investment application,” added the company.

It should be noted that other paint companies have been looking at expansion in foreign markets especially in the Southeast Asian markets. Interestingly, earlier this month, another paint major, Nerolac Paints has entered into a joint venture with Maharaja Group in Sri Lanka.

Image Credit: Official Website of the Company