Asian Paints to build white cement manufacturing facility in Fujairah

Asian Paints has entered into a joint venture agreement with Riddhi Siddhi Crusher & Land Transport and Associated Soap Stone Distributing Company (ASD) to establish a white cement manufacturing facility in Fujairah, the UAE.

The Fujairah white cement plant with an initial capacity of 2,65,000 tons per annum will manufacture and export white cement and white cement clinkers.

The joint venture valued at approximately INR 550 crores, will also set up clinker grinding units in India.

Amit Syngle — Asian Paints MD and CEO, said: “Asian Paints is excited to enter the white cement space by setting up its own manufacturing facility in partnership with Riddhi Siddhi and ASD in Fujairah, UAE.

“Given the synergy of 70% of the white cement being sold through the paint/hardware/tile retailers, this offers Asian Paints a huge opportunity to market white cement to our extensive network of dealers across the country.

“This unique endeavour of backward integration and having a finished product gives us a chance to value add to our customers and at the same time add to our revenue and margins.”

Asian Paints said, in a statement, the joint venture would be a 60:40 partnership between the company and Riddhi Siddhi & Associated Soap Stone Distributing Company.

Riddhi Siddhi holds mining rights for high quality limestone mines in Fujairah, while Associated Soap Stone Distributing Company (Golcha Group) is a supplier of certain raw materials to the paint industry.

The transaction is subject to necessary regulatory and other approvals, and due diligence.

The white cement market for usage in undercoats and in repair or tile fixing areas is increasing by 15-20% every year, according to Asian Paints.