Asian Paints completes divestment of its Indonesian operations for Rs 44 cr

Asian Paints Ltd on Thursday said it has completed the divestment of its Indonesian operations to Singapore-based subsidiary of Omega Property Investments Pty Ltd, Australia, for a consideration of SGD 6.8 million (Rs 44 crore).

Last month, the company had announced that its wholly-owned arm Asian Paints International Pvt Ltd, Singapore (APIPL), has entered into a share purchase agreement with Berger Paints Singapore Pte Ltd, Singapore, subsidiary of Omega Property Investments Pty Ltd, Australia, for sale of 100 per cent stake held in PT Asian Paints Indonesia (PTAPI) and PT Asian Paints Color Indonesia (PTAPCI).

PTAPI and PTAPCI are wholly-owned subsidiaries of APIPL.

APIPL on Thursday completed the divestment of the Indonesia operations by sale of the entire stake held by APIPL in PTAPI & PTAPCI for a consideration of SGD 6.8 million (about Rs 44 crore), Asian Paints said in a regulatory filing.

PTAPI and PTAPCI have ceased to be the subsidiaries of APIPL with effect from March 20, 2025, it added.

APIPL had set up the two wholly-owned entities about nine years ago to tap the architectural coatings opportunity in Indonesia.

Asian Paints last month stated that despite the varied strategic steps undertaken over the last nine years to expand its operations in Indonesia by creating a strong customer value proposition through its expansive product portfolio, the operations in Indonesia remained sub-scale and immaterial to the overall international operations of the company.

Based on the strategic review of all its businesses, APIPL has decided to divest its operations in Indonesia, it added.

The divestment is expected to lead to a recognition of loss of approximately Rs 90 crore in the consolidated financials of the company, subject to necessary adjustments at closing of the transaction, the company had said.