Painting A Bright Future

Asian Paints Limited (APL) is India's largest paints company and ranks among the top 10 decorative paint companies in the world. Asian Paints boasts of a 32 per cent market share in India while it serves consumers in 65 countries of the world with 30 manufacturing plants in 22 of those countries. In India, APL has six manufacturing plants, namely in Sriperumbadur, Mumbai, Ankleshwar, Patancheru, Kasna and Taloja. Investment Rationale Booming Housing Sector 80 per cent of APL's total production capacity is used to produce decorative paints. Housing accounts for over 40 per cent of the demand for decorative paints and what paints a rosy picture for APL is the estimation that around five million new housing units are likely to be added every year in the coming times. The rising trend of nuclear families, increased incomes, government's sops for housing loans, easy financing and longer repayment tenures are other factors that will further increase the number of households and boost APL's sales. Capacity Expansion To cater to the ever-growing demands for decorative paints, APL is expanding

This article was originally published on August 06, 2008.