Asian Paints to set up new 50:50 JV with PPG Industries; expand business
21 Sep 2011
Asian Paints Limited is planning to set up a new 50:50 joint venture with PPG Industries of the US, even as the two expand their existing joint venture, Asian PPG Industries Ltd (APPG).
APPG, a 50:50 joint venture between Asian Paints and PPG Industries, is engaged in the manufacture of specialty coatings. The two companies will also expand their current 50-50 joint venture as part of this arrangement.
The board of directors of Asian Paints at its meeting today, also decided to set up a second joint venure through a composite scheme of merger and demerger.
Under the scheme, PPG India Private Limited, PPG Coatings India Private Limited (subsidiaries of PPG in India) and AP Coatings Limited (wholly owned subsidiary of Asian Paints) will merge with APPG.
The scheme also provides for the demerger of the liquid industrial paints, powder coatings and protective coatings businesses from APPG into the second joint venture company.
The composite scheme, however, is subject to the approval of the Madras and Bombay high courts and such other approvals as may be necessary, Asian paints said in a filing with the Bombay Stock Exchange (BSE).