Asian Paints is the market leader in the Indian paint industry with a market share of ~53 per cent. In first phase of expansion, the company has commenced Mysuru plant in Sep 2018 with an installed capacity of 300,000 KLPA. The Vizag plant is on course to be commissioned in 4QFY19. The company plans a total capex of Rs. 800 crore on these two plants with an additional capex of Rs 200 crore. Consequently, the company’s logistics cost is likely to come down as these plants are in close proximity to the key high demand geographies. Notably, the declining crude oil prices (Brent crude below $70) will aid company’s profitability in the coming quarters. Besides, the company is likely to hike prices to offset higher input prices which would be margin accretive. Considering all these, we recommend a BUY on this scrip.