The total outlay is almost about Rs. 6,750 crore in terms of what we are committing for the next three years, says Amit Syngle, MD & CEO, Asian Paints Limited speaking at Q2 FY2023 Earnings Conference Call.   

"This would be a big kind of step in terms of Asian Paints which is taking to really see that we’re in line with the overall aggressive growth for the next three years plus the entire thing of a sustainable cost advantage which really comes in from the backward integration at the same time, furthering our overall core business and Home Decor business with some key acquisitions, which we are taking to that extent overall to that extent," says Syngle.

So, I think that’s the overall plan, and I think we are pretty excited in terms of taking this ahead as we look at it, he adds.

"So, I would divide our overall investments into two parts. One is the overall expansion of the manufacturing footprint. Today we operate at almost about a 75% kind of a capacity utilisation, overall, to that extent. We are looking at increasing the entire manufacturing capacity for more than 30% to about 22.7 lac KL per annum, which is for our own manufacturing capacity in terms of what is their other than the outside processing in terms of what we use; and this is something which possibly is in line with our overall growth in terms of what we are seeing in the coming next 3-4 years overall that we will require this kind of capacity to come in overall to that extent and basically we also look at in terms of from the point of view of the backward integration that it will really help us. So, if you look at only the capacity announcement part, we are looking at almost an investment of Rs. 3,400 crore, which possibly includes the investment of the Capex in terms of this year and going forward in the next three years," Syngle reveals.

"The backward integration two things which I spoke of, which is the VAM VAE and the white cement which is there in terms of what we have spoken and is about another Rs. 2,550 crore and the acquisitions which we have already made earlier in terms of White Teak, Weatherseal and now Nano overall this is about Rs. 800 crore," informs Syngle.

"As you see one of the key strategies that Asian Paints has been in terms of looking at expanding our footprint with respect to distribution, so that customers all across the country have easy access to Asian Paints products and this is something which we have been pursuing very strongly and we’ve already added about 8,000 new retailing points this year, when we look at the half year which is happened this year. So, I think it’s again something which has been going on a very strong path and we believe that this is one of the areas which is also giving us very good growth as far as the rural towns are concerned and that is principally one of the reasons why the rural demand is getting ignited," Syngle adds.