PRESS RELEASE

Asian Paints announces strategy for growth.

Berger International to pioneer growth for the company
in its international operations.

December 13, 2002 - 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.

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Corporate Communications: Asian Paints House, 6A Shanti Nagar, Santacruz (E), Mumbai 400055, India.
Tel : +91-22-5695 8549 / 8548 Fax : +91-22-5695 8805 Email : proffice@asianpaints.com
 PRESS RELEASE
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.
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Corporate Communications: Asian Paints House, 6A Shanti Nagar, Santacruz (E), Mumbai 400055, India.
Tel : +91-22-5695 8549 / 8548 Fax : +91-22-5695 8805 Email : proffice@asianpaints.com
 PRESS RELEASE

ABOUT ASIAN PAINTS

Asian Paints is India's largest paint company with a turnover of INR16.56 billion
(around US$ 340 million). The company sells over 200,000 MT of paint annually and
is ranked amongst the top 10 decorative coatings companies in the world. It is also
India's largest exporter of paints, exporting to over 15 markets in the Asia-Pacific
region, the Middle East, and Africa. After the acquisition of Berger International
Limited, the company would have 22 joint venture units with manufacturing facilities
in all of these markets. It is the market leader in ten countries including India.

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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Issued on behalf of the companies by WeR1 Consultants Pte Ltd, Singapore
(info@wer1.net)

Corporate Communications: Asian Paints House, 6A Shanti Nagar, Santacruz (E), Mumbai 400055, India.
Tel : +91-22-5695 8549 / 8548 Fax : +91-22-5695 8805 Email : proffice@asianpaints.com