Asian Paints to invest Rs 2,400 cr for manufacturing unit in Nanjangud

Bengaluru: After losing the prestigious Hero Motocorp project to Andhra Pradesh last week, the Karnataka government is on an aggressive drive to woo investors and transform the state's image as an investor-friendly destination.

A day after Swedish furniture retailer Ikea lined up investment of Rs 500 crore in Karnataka, Asia's third largest paint company Asian Paints is investing Rs 2,400 crore to set up a manufacturing unit in Nanjangud in Mysore district. The 175-acre project was cleared by the State High Level Clearance Committee (SHLCC) recently.

Asian Paints will reportedly set up a production unit with manufacturing capacity of 6 lakh kilolitres per day.

The project would be rolled out in two phases - with manufacturing capacity of 4 lakh kilolitres per day and 2 lakh kilolitres per day. Asian Paints, with a turnover of Rs 12,700 crore, operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries.

Though the project ran into hurdles related to land acquisition, the state government is learnt to have pulled out all stops to approve it. Chief minister Siddaramaiah, who also holds the commerce and industries portfolio, is said to have taken special interest as the project will be based in his home district and the decision would be sealed at Friday's cabinet meeting.

The state machinery is addressing investor grievances to avoid the flight of investment to neighbouring states. Last week, Hero Morocorp chose Andhra Pradesh over Karnataka to set up a Rs 2,200-crore facility.

Ratna Prabha, additional chief secretary, commerce and industries department, told TOI on Thursday that the Asian Paints plant would create direct employment for 1,000 people immediately, and more in the coming days. "The plant would be eco-friendly, fully automated with almost zero discharge of effluents," she said.

Asked whether the government was fast-tracking industrial projects after it lost Hero Motocorp to Andhra Pradesh, Prabha said reports of laxity on the part of the department were not true. "Just because one company opted for the neighbouring state, it doesn't mean the state machinery was slow. Many projects have been lined up and will be showcased soon," she added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.