Why Asian Paints is doubling down on the Middle East with new AED 140 Million UAE Facility?

Synopsis:
The company’s shares have been soaring since robust earnings, adding to it the Firm reported Rs. 340 crores investment done by its step down subsidiary. How this will add value to the business, their plan and more.

The share of this Nifty 50 player engaged in the business of wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware, lightings, soft furnishings, and uPVC windows, followed by expansion in global manufacturing capacity

With market capitalization of Rs. 2,75,673 Crore, Asian Paints Ltd’s shares made a day high of Rs. 2,913 per share on Thursday, trading near its 52 Week high of Rs. 2,926 per share. The company has generated a return of 15.5 percent in the last one year, twice the Nifty 50’s return of 7.9 percent YTD.

What’s the news

Asian Paints Ltd’s step down subsidiary that is Berger Paints Emirates Ltd Co (L.L.C), UAE, proposes to set up its second Paint manufacturing facility in UAE with an investment of AED 140 million (approximately Rs. 340 crores), having an initial capacity of 55,800 KL per annum. The facility will be spread across 100,000 sqm within Khalifa Economic Zones Abu Dhabi (‘KEZAD’), Abu Dhabi, UAE.

This investment is an addition to Asian paints’s Backward integration plan that has given them advantage in the market. Followed by their white cement plant commissioned successfully in Fujairah, UAE, with tested capacity of product going up to 90 percent. Accompanied by the VAM VAE project’s(backward-integration initiative focused on securing key raw materials critical for paint manufacturing) one part nearing completion and will unfold by Q1 FY27, with committed capex of Rs. 3,250 crore.

Asian Paints’ focus on the middle east as the key market is justified by, strong quarter with 9.9 percent growth in INR terms in the overseas Where Asian markets are doing well but the difference maker is Middle East, UAE as it is the main driver of growth in the region, which has led to an overall PBT margin of 9 percent this year, a jump of 450 basis points compared to previous year with focus on Prelux(paint)  and waterproofing ranges, which is a “strong performance in terms” of “international business” added MD & CEO, Amit Syngle.  

About the business

Asian Paints Ltd is the largest home decor company in India. The 80+yr old company has major brands like Asian Paints, Apco, etc under its umbrella. The co. is into wall paints, wall coverings, waterproofing, texture painting, wall stickers, mechanized tools, adhesives, modular kitchens, sanitaryware, lightings, soft furnishings, and uPVC windows.

Financial highlights, Net Sales grew by 6 percent YoY to Rs. 8,531 crore in Q2 FY26, supported by growth across decorative, Industrial and International business. Accompanied by operating profit grew by 21.2 percent to Rs. 1,503 crore in Q2 FY26 and Net profit grew by 46.6 percent YoY to Rs.1,018 crore in Q2 FY26.

The firm is counting on the wedding season to provide support to sales in Q3. Demand is expected to be steady, and the international and industrial segments will keep their strong momentum. Thankfully, raw material costs look stable, helping our margins.

Written By Gaurav Pratap Singh

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