Discover the groundbreaking move by Asian Paints as they embark on a revolutionary venture in Dahej. With a strategic investment in an ethylene storage and handling facility, the company is set to redefine the industry landscape. Get the inside scoop on this game-changing development and its implications for investors and stakeholders.
Asian Paints’ Expansion Plans Boost Shares: Setting Up Ethylene Facility in Dahej
Asian Paints’ shares saw a 0.7 percent increase at the start of trading on March 7, following an announcement by the company regarding its subsidiary’s new venture. The subsidiary, Asian Paints (Polymers) (APPPL), has signed agreements with Gujarat Chemical Port Limited (GCPL) to establish an ethylene storage and handling facility in Dahej.
In a regulatory filing, APPPL confirmed its collaboration with GCPL for the construction of the ethylene storage and handling facility. As part of the agreement, APPPL will provide a security deposit of Rs 460 crore to GCPL. This deposit will be refunded gradually over 17–18 years. Additionally, APPPL will invest Rs 2,100 crore in setting up the vinyl acetate-ethylene emulsion (VAM) and vinyl acetate monomer (VAE) manufacturing facility.
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Financial Performance
Asian Paints reported a consolidated net profit of Rs 1,475.16 crore for the third quarter of fiscal year 2023–24 (Q3FY24), marking a significant increase of 34.4 percent compared to the previous fiscal year. The company’s revenue for the same period also exhibited growth, rising by 5.4 percent year-on-year to Rs 9,104 crore.
The decision to expand its operations by establishing an ethylene storage and handling facility in Dahej reflects Asian Paints’ strategic efforts to diversify its business and capitalize on emerging opportunities. The investment in infrastructure and manufacturing facilities underscores the company’s commitment to long-term growth and sustainability.
Overall, the expansion initiative aligns with Asian Paints’ vision to strengthen its presence in key markets and enhance its capabilities to meet evolving customer demands. Investors responded positively to the announcement, indicating confidence in the company’s strategic direction and growth prospects.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and BSE, NSE, the Official website of the company have contributed to the above report
Disclaimer: Bhaarat Bulletin only provides market news and dynamics for informational purposes and should not be seen as a piece of investment advice. Readers are requested to consult a qualified financial advisor before making investment decisions.
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