Asian Paints re-starts Egypt operations

Posted By: Pti
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New Delhi, Feb 7 (PTI) India''s leading paint company,Asian Paints, today announced it has commenced operationspartially, at its two manufacturing units in Egypt.

The company had shut down operations at the twomanufacturing units last week, in the wake of the ongoingpolitical crisis in Eygpt.

"The two plants of the company''s subsidiary, SCIBChemicals SAE, Egypt, which were shut due to prolonged curfew,have restarted the operations partially with effect fromFebruary 6, 2011," Asian Paints said in a filing to theBombay Stock Exchange.

According to sources, the company''s decision tore-start the operations, however, did not suggest anyimprovement in the situation in the country.

Asian Paints'' two manufacturing units are located at anindustrial area about 50 kilometres from Cairo.

Other leading FMCG companies, Dabur and Marico, havetemporarily shut down their plants in the Arab nation.

According to Anand Shah, Research Analyst, ElaraSecurities India, Egypt contributes significantly to the salesin the Middle East (ME) region for Asian Paints.

The ME region witnessed a turnover of Rs 650 crore outof the total international revenues of Rs 1,215 croreregistered by the company in 2009-2010, said Shah.

Last fiscal, consolidated revenue of Asian Paints hadstood at Rs 5,125 crore.

In 2002, the company had acquired controlling stake inSCIB Chemicals, one of the top five paint companies in Egypt.

Thousands of protesters have taken to the streets ofCairo and other cities of Egypt demanding the end of PresidentHosni Mubarak''s 30-year rule.

The company''s scrips were trading at Rs 2,519.9 per shareduring the afternoon trade, up 1.59 per cent from the previousclose on the Bombay Stock Exchange.

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