Asian Paints to Sell Its Indonesia Business for Rs 48 Crore to THIS Company

Asian Paints to Sell Indonesia Business to Berger Paints Singapore: Asian Paints has announced the sale of its Indonesia business to Berger Paints Singapore. As India's largest paint company by market share, Asian Paints is facing increasing competition from other paint brands.

Mumbai-based Asian Paints has announced the sale of its Indonesia business. According to a company statement, it will sell its Indonesia operations to Berger Paints Singapore for Rs 48 crore.

Asian Paints stated that the divestment of its Indonesia operations would result in an estimated loss of approximately Rs 90 crore in its consolidated financials, subject to necessary adjustments at closing.

Asian Paints International Private Limited, Singapore (APIPL), a wholly owned subsidiary of the company, has been operating in Indonesia since FY 2016–17 through its wholly owned subsidiaries, PT Asian Paints Indonesia (PTAPI) and PT Asian Paints Color Indonesia (PTAPCI).

The company said: "APIPL along with PTAPI and PTAPCI, have today entered into a Share Purchase Agreement with Berger Paints Singapore Pte Limited, Singapore, subsidiary of Omega Property Investments Pty Ltd., Australia, for sale of 100% stake held in PTAPI and PTAPCI for a consideration of SGD 7.5 Mn (Rs. 48 crores), subject to completion of certain conditions precedent and adjustments at closing."

Following the completion of the transaction, PT Asian Paints Indonesia (PTAPI) and PT Asian Paints Color Indonesia (PTAPCI) will no longer be subsidiaries of Asian Paints International Private Limited, Singapore (APIPL), and the company will cease its operations in Indonesia.

According to Asian Paints, PTAPI and PTAPCI have a limited presence in Indonesia’s coatings market and are not significant to the company’s overall international operations.

As India’s largest paint company by market share, Asian Paints faces increasing competition from rivals such as Birla Opus, Grasim Industries, and JSW. This competition has impacted its market share and profitability.

In the third quarter of FY2025, Asian Paints reported a 23.5% decline in consolidated net profit, which stood at Rs 1,128.43 crore, compared to Rs 1,475.16 crore in Q3 FY2024. Revenue from operations also dropped 6% year-on-year to Rs 8,549.44 crore.

With a market capitalization of Rs 2.12 lakh crore, Asian Paints is a large-cap company. However, its stock is currently trading at a four-year low, having declined 40% from its peak.

Source : Asian Paint