Asian Paints posts 25 per cent fall in Q1 net profit at Rs 1,170 crore
The company’s revenue from operations fell by 2 per cent to Rs 8,970 crore year-on-year.
Mumbai-headquartered Asian Paints officially announced in a regulatory filing on Friday that it has decided to divest its business operations in Indonesia.
The company’s wholly-owned subsidiary company called Asian Paints International Pvt Ltd, Singapore (APIPL), has entered into a share purchase agreement to sell off its entire stake in its Indonesian operations to Berger Paints Singapore Pte Limited, Singapore (BPSPL).
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Asian Paints stated that the deal, which is valued at Singapore Dollars (SGD) 7.5 million (approximately Rs 48 crore), is expected to be closed on or before March 31, 2025.
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APIPL had set up two wholly-owned entities, namely PT Asian Paints Indonesia and PT Asian Paints Colour Indonesia, nine years ago, in order to tap business opportunities in Indonesia. However, the company stated that its business in Indonesia remained sub-scale and immaterial to the company’s overall international operations, despite several strategic steps to enhance their scale.
“Based on the strategic review of all its businesses, APIPL has decided to divest its operations in Indonesia. The divestment is expected to lead to a recognition of loss of about Rs 90 crores in the consolidated financials of the company, subject to necessary adjustments at the closing of the transaction,” according to the Asian Paints statement.
Asian Paints Managing Director & CEO, Amit Syngle, stated, “This announced divestment of our operations in Indonesia will enable us to focus on priority markets of Middle East and South Asia and strengthen our international portfolio”.
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