Asian Paints to stay invested in Karnataka

Indian chemicals major Asian Paints Ltd on Wednesday announced it would go ahead with investing in Karnataka and had no plans to pull out of the state.

"We are committed to invest Rs.2,300 crore in setting up a new plant at Nanjangud near Mysuru to produce a variety of paints and other products for the southern market," Asian Paints president Jalaj Dani told reporters here.

He also reaffirmed his company's plans to Chief Minister Siddaramaiah at a meeting with him in the secretariat here.

The company's assertion to remain in the state comes in light of media reports that Asian Paints was shifting its greenfield project to Andhra Pradesh, as the country's largest bike maker Hero MotorCorp did in September 2014 to the neigbouring state, which wooed it with more incentives than Karnataka.

"Our new plant at Nanjangud will create jobs for about 900 people directly and 4,500 people indirectly. It will be one of our biggest plants in the world and is projected to generate Rs.10,500 crore sales revenue when fully commissioned," Dani said.

The state government has allocated 175 acres of land to the Mumbai-based paint firm and offered a slew of incentives, including tax sops as the plant will be located in the special industrial area.