Asian Paints has announced its decision to exit the Indonesian market by selling its business to Australia’s Omega Property Investments for $5.6 million. This move comes after nine years of operations in Indonesia, with the company facing persistent difficulties in achieving growth, maintaining profitability, and controlling costs.

Despite implementing various strategies to expand its presence in Indonesia, the business remained small-scale and had minimal impact on the company’s overall international operations. Asian Paints operates in 15 countries and derives 9 per cent of its revenue from international markets, with the bulk of its earnings coming from its strong position in the Indian market.

The contribution of the Indonesian operations to Asian Paints’ consolidated revenue was just 0.24 per cent, underscoring its limited role within the company’s global portfolio. The company disclosed that it will recognise a loss of $10.4 million from the transaction, with its Indonesian assets valued at $19 million as of the fiscal year 2024, as per its latest annual report.

News source: Business World