India's Asian Paints announced that it will sell its Indonesian business to Australia's Omega Property Investments for S$7.5 million ($5.6 million), citing growth challenges nine years after entering the market.
Asian Paints said early last year that pursuing growth in Indonesia was "tough" due to profitability and cost control being under pressure.
"Despite the varied strategic steps undertaken over the last 9 years to expand its operations in Indonesia... operations in Indonesia remained sub-scale and immaterial to the overall international operations," Asian Paints said.
The paint maker, with operations in 15 countries, gets 9 per cent of its revenue from its international business. It garners most of its revenue from the Indian market, where it is the market leader. The Indonesia business contributes a mere 0.24 per cent to the company's consolidated topline.
According to its latest annual report, the company will recognise a loss of $10.4 million from selling its Indonesian assets, worth a net $19 million as of fiscal year 2024.
