Asian Paints rose 0.54% to Rs 813.50 at 09:48 IST on BSE after the company entered into and signed a Memorandum of Understanding with the Government of Andhra Pradesh to set up a manufacturing facility for paints and intermediates in Andhra Pradesh.
The company made announcement after market hours yesterday, 10 March 2015.
Meanwhile, the S&P BSE Sensex was up 37.71 points or 0.13% at 28,747.58
On BSE, so far 20,820 shares were traded in the counter as against average daily volume of 1.88 lakh shares in the past one quarter.
The stock hit a high of Rs 819.40 and low of Rs 812.05 so far during the day. The stock had hit a record high of Rs 922.80 on 29 January 2015. The stock had hit a 52-week low of Rs 477.65 on 11 March 2014.
The large-cap paint manufacturer has equity capital of Rs 95.92 crore. Face value per share is Re 1.
Asian Paints yesterday, 10 March 2015 said that the company has entered into and signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to set up a manufacturing facility for paints and intermediates at Pudi Village, Rambilli Mandal, Vishakhapatnam District, Andhra Pradesh.
An amount of approximately Rs 1750 crore would be invested by the company in phases over a period of 12 years from the date of commencement of construction, including the cost of land admeasuring approximately 110 acres, subject to due diligence and obtaining necessary regulatory and other approvals, Asian Paints said. The maximum capacity of the said manufacturing facility would be 4,00,000 kiloliters per annum, which would be achieved in phases, the company said.
Asian Paints said that the Andhra Pradesh Government has offered package of incentives to the company for setting up of the paints manufacturing plant by reimbursement of 100% gross VAT/State Goods and Service Tax (SGST) or similar levy of taxes in the state of Andhra Pradesh for a period of twelve years starting from the date of commercial production, subject to an overall cap of 100% of eligible investments and that the company achieves 70% of the proposed investment of Rs 1750 crore within a period of five years. Total reimbursement would be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Central Government of India. All other incentives as per the Andhra Pradesh Industrial Investment Promotion Policy 2010-2015 would also be provided, the company said.
Asian Paints' consolidated net profit rose 11.8% to Rs 368.18 crore on 5.8% rise in total income to Rs 3684.64 crore in Q3 December 2014 over Q3 December 2013.
Asian Paints is India's largest and Asia's third largest paint company. Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries.
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