Asian Paints extends tie-up with PPG Industries

Mumbai | Updated on January 25, 2011

Asian Paints has extended the current joint venture with US-based PPG Industries Inc, one of the world's leading coating and speciality products companies, to accelerate growth in the non-decorative coatings businesses.

The proposed second joint venture will service the protective, industrial powder, industrial containers and light industrial coatings markets. The board of Asian Paints today approved plans to enhance its 14-year-old relationship with PPG Industries Inc.

The modalities are being worked on. The arrangement is subject to regulatory approvals and is expected to be completed during this year, Asian Paints said in a press release on Monday.

The current 50:50 joint venture company Asian PPG Industries Ltd services the Indian transportation coatings markets.

Mr P.M. Murty, Managing Director and CEO, Asian Paints, said through this new approach, the company will accelerate growth by leveraging PPG's technology and global customer relationships while continuing to build on Asian Paints' customer base, manufacturing footprint, distribution channels and local relationships.

Net up 16%

Asian Paints on Monday posted a 16 per cent rise in net profit at Rs 207 crore for the third quarter ended December 31, 2010, against Rs 179 crore in the same period previous fiscal. Net sales improved on a standalone basis increased by 37 per cent to Rs 1,754 crore from Rs 1,278 crore.

Asian Paints scrips on Monday were down 1.45 per cent at Rs 2,622 on the BSE.

Published on January 25, 2011

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