Asian Paints is India's largest paint company and ranks among the top ten

decorative coatings companies in the world today, with a turnover of Rs 20.67

billion (USD 435 million). Over the course of 25 years Asian Paints became a
corporate force and India's leading paints company. Driven by its strong
consumer-focus and innovative spirit, the company has been the market leader in
paints since 1968. Today it is double the size of any other paint company in India.
It has also drawn on the world's latest technology for its manufacturing
capabilities in areas like powder coatings and high-tech resins - thus ensuring that
its product quality lives up to exacting international standards, even in the most
sophisticated product categories. The company places strong emphasis on its own
in-house R&D, creating new opportunities by effectively harnessing indigenous
creativity. Asian Paints operates in 23 countries across the world. It has
manufacturing facilities in each of these countries and is the largest paint
company in nine overseas markets. It is also India's largest exporter of paints,
exporting to over 15 markets in the Asia-Pacific region, the Middle East and Africa.
In 12 markets it operates through its subsidiary, Berger International Limited and
in Egypt through SCIB Chemical SAE.

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Asian Paints announces

strategy for growth

Berger International to Pioneer Growth for the

Company in its International Operations.

14 Dec 2002 , Mumbai : Asian Paints Limited

("Asian Paints") is transforming itself to become
a major world player in the decorative paints
business with particular focus on emerging
markets following its acquisitions of controlling
stakes in Berger International Limited ("Berger
International") of Singapore and SCIB Chemical
S.A.E. ("SCIB") of Egypt. The total investment
made by the company in both these
acquisitions amount to around US$ 16.8 million
(S$29.6 million).

Asian Paints announced that it would focus on

emerging markets of the world for growth and
also that Berger International will be the main
growth driver for Asian Paints international
operations.

"Following the acquisitions this year we are

among the top ten decorative paint companies
in the world " said Mr. Jalaj Dani, Head of
international operations of Asian Paints and
newly appointed Chairman of Berger
International. "The emerging markets has 50%
of the world s population and this is where we
see the potential upside as we seek to draw
more efficiencies out of the acquisitions we
have just completed," he said in a statement.

Focusing on the aspect of increasing

shareholder value in Berger International, Mr.
Dani said: "In Berger International, Asian Paints
will focus to increase shareholder value by
further improving the supply chain management
in the subsidiaries (Asian Paints supply chain
management is considered the best in India
servicing around 14,500 dealers directly from
70 sales locations and manufacturing over
2,500 stock-keeping units (SKUs).

"Further, the company will implement cost

structures in Berger s operations worldwide for
increased plant efficiencies and increased asset
productivity. It will focus to improve working
capital management through various initiatives
and introduce information technology in areas
of operations where essential.

Asian Paints will innovate and develop new

products for the individual units of Berger
International to boost top-line sales. We are
confident that all these measures will reflect
positively on the operations of Berger
International," he added.

He further added: "Besides the acquisitions in

Singapore and Egypt, Asian Paints have just
commissioned in September 02 a new
greenfield venture in the fast-growing
Bangladesh market. This is Asian Paints largest
greenfield venture. Low per capita consumption
of paints in Bangladesh, vast potential to
upgrade the market, limited product range,
increased urbanisation and consistent GDP
growth have been some of the reasons for
Asian Paints entering into this market."

Asian Paints had announced that the six-month

results for the Mumbai-based parent company
for the period ended September 30, 2002. The
company posted revenues of Indian Rupees
(INR) 7237.73 million (about S$259 million), an
increase of 15.9 % over the corresponding
period of the previous financial year. Net profit
for the company increased by 42.0 % to
INR701.38 million (about S$25 million). EBDIT
increased by 33.4 % to INR1407.21 million
(about S$50 million). Market share gains,
margin improvement, improved efficiencies and
good growth in new products have been some
other major achievements in the performance of
Asian Paints for the first six months of the
financial year.

On the international front, the company has

made forays in 13 countries in the last four
months through Berger International (11
countries), SCIB Chemical, Egypt and
Bangladesh (greenfield venture).

On October 24, Asian Paints completed the

Partial General Offer (PGO) of Berger
International, taking a 50.1% stake in the
Singapore Exchange-listed Company for
S$20.8 million (US$11.8 million). This followed
an acquisition of a 60%-stake in SCIB, Egypt s
fifth largest paint company, for US$5 million
which was completed in November 02.

Following the acquisitions, the enlarged group

now operates in 24 countries scattered over
mostly emerging markets in South Asia, the
Middle East, Mediterranean, East and South
East Asia, the South Pacific and the Caribbean,
with combined paint manufacturing capacity in
27 facilities of 330 million litres per annum.

The immediate focus will be to turn around the

operations of under-performing units of Berger
International and add value from Asian Paints
by improving efficiencies in operations,
manufacturing, distribution and introduction of
new products.

About Berger International

Berger International is one of the oldest names
in the paint and specialist coatings industry. Its
history can be traced back to London in 1760,
when Lewis Berger founded the business. Over
the years, through mergers, acquisitions and
the establishment of operations in many
countries, the business has grown in size and
stature. The Company is the holding company
of the Group s operations in the East and South
East Asia, the Caribbean, the Mediterranean
and the Middle East.

Incorporated on December 3, 1993 as a private

limited company, Berger International was
converted into a public company on March 31,
1994. Through its operating subsidiaries and
associate company, the Group is engaged in
the manufacture and distribution of paints. It
has manufacturing plants in Singapore,
Malaysia, Thailand, Myanmar, China, Malta,
Bahrain, UAE, Jamaica, Trinidad and
Barbados.

About SCIB
With 52 million Egyptian pounds (about S$20
million) in sales in 2001, SCIB CHEMICAL is
one of the five largest paint producers in Egypt
and considered by market watchers as dynamic
and an innovative company. Established in
1978 by the prominent Moussa family, it was
turned into a joint stock company in 1997 and
became a subsidiary of United Paints &
Chemicals (UPC) which is a 50:50 joint venture
between Egypt s giant Orascom Construction
Industries Group (OCI) and the Moussa Family,
the Hafez Family and Mr. Badr Sednaoui. SCIB
Chemical has a modern paint plant situated in
the city of 6th of October that has a capacity of
25,000 MT.

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