Asian Paints, India's biggest paint producer, on Wednesday said it has temporarily closed the company's chemical plant in Gujarat that makes phthalic anhydride (PAN). The company's plant in Ankleshwar produces PAN, a component used in paint making, for its own use as well as for other paint makers.
"The shutdown is partly because of inventory pile up and partly for annual maintenance," said a company spokesperson. "It can take from a week to a month to re-start the plant," he said, without giving more details. India's economy is expected to grow at a slower pace by the end of this financial year as demand for homes, offices and cars slows. The impact of the slowdown on the paint, home and office furnishing industry is expected to be felt with a lag, say analysts.
The chemical business, including PAN, is a part of Asian Paint's backward integration strategy and constitutes 2.7 per cent of the total revenue of the company. Asian Paints sales in the first six months of the financial year rose 30 per cent to Rs 2,717 crore (Rs 27.17 billion) while profit climbed 21 per cent to Rs 237 crore (Rs 2.37 billion) in the period.
