Asian Paints, India’s largest paint producer, is set to invest ₹1,500–2,000 crore in a new greenfield plant at Indore, Madhya Pradesh. The upcoming facility will mark the company’s ninth manufacturing unit and will have a water-based paint capacity of 4 lakh kilolitres (kl) per annum, raising its total installed capacity to 26 lakh kl. The investment comes at a time when competition in the paints sector is intensifying with new players such as Aditya Birla Group’s Grasim Industries, JSW Paints, JK Cements, and Pidilite entering the market.
Land Acquired, Approvals in Progress
According to Amit Syngle, Managing Director and CEO of Asian Paints, the company has already secured the land for the Indore plant and is currently pursuing regulatory approvals. “The investment in the new plant will be about ₹1,500–2,000 crore. We are increasingly focusing on sustainable, water-based plants of 4 lakh kl capacity. Instead of setting up multiple small plants across states, our strategy is to ensure pan-India geographic coverage across the north, east, south, and west,” Syngle explained.
Expanding Manufacturing Footprint
Asian Paints currently operates plants at Rohtak (4 lakh kl), Kasna (1.20 lakh kl), Ankleshwar (2.50 lakh kl), Khandala (4 lakh kl), Patancheru (80,000 kl), Visakhapatnam (3 lakh kl), Mysuru (6 lakh kl), and Sriperumbudur (1.40 lakh kl). The new Indore facility will further strengthen this network and enhance supply across regions.
Demand Driven by Infrastructure Push
Government infrastructure projects such as highways, tunnels, railways, ports, and defence initiatives are fueling much of the demand growth. Although demand from the auto OEM and refinish segments slowed earlier this year, it has now begun to recover, strengthening the company’s positive outlook.
Market Potential and Future Outlook
Despite heightened competition, Asian Paints sees ample growth opportunities in India’s expanding market, supported by rapid urbanization and increasing prosperity in smaller cities and towns. “We expect more consolidation in the paint industry and the entry of new foreign players in the coming months,” Syngle noted.
As reported by thehindubusinessline.com, to keep pace with this demand, Asian Paints leverages its network of over 1.65 lakh dealers, adding 4,000–5,000 new dealers each year. Previously neglected smaller towns are now emerging as key markets, reflecting the sector’s broadening base of growth.
