Asian Paints to Sell Its Indonesia Business to Omega Property for $5.6 Million

Asian Paints announced that it will sell its Indonesian business to Australia’s Omega Property Investments for $7.5 million ($5.6 million), citing challenges in achieving growth after nine years in the market.

The Indian paint manufacturer had stated early last year that expanding in Indonesia was difficult due to profitability concerns and cost pressures.

"Despite various strategic efforts over the past nine years to grow its presence in Indonesia, the operations remained sub-scale and insignificant to the company’s overall international business," Asian Paints said.

With operations in 15 countries, the company derives 9% of its revenue from international markets, while the majority comes from India, where it holds a leading market position.

The Indonesia business contributes a mere 0.24 per cent to the company's consolidated topline.

Asian Paints said it will recognise a loss of $10.4 million from selling its Indonesian assets, which were worth a net $19 million as of fiscal year 2024, according to its latest annual report.

The company's shares fell 1 per cent after the news, but trimmed losses to close 0.2 per cent lower.

Source: Business Standards