8 months ago
Paint Makers Expect Sales Growth Amid Competition
Big paint companies in India are hoping to sell more paint and make more money in the next few months.
They think this will happen because of good weather, lower taxes, and more people getting married.
However, they also say there are more companies selling paint now, which makes it harder to compete.
Some companies have already raised their prices a little bit.
The big companies like Asian Paints, Kansai Nerolac, and Berger are the most important in this market.
They think the next few months will be better for selling paint, but they have to be careful because there are more competitors.
Leading paint makers expect an uptick in sales and volume in the ongoing quarter.
Improvement in margins is anticipated due to benign material prices.
Higher competitive intensity is foreseen due to new entrants in the market.
Cumulative price increases of 1.5-2% have been reported by some makers.
Key players include Asian Paints, Kansai Nerolac, Berger, and AkzoNobel India.
- Who
- Leading paint makers such as Asian Paints, Kansai Nerolac, Berger, and AkzoNobel India
- What
- Expect an uptick in sales and volume in the ongoing quarter, with improved margins due to benign material prices
- Where
- India
- When
- The ongoing quarter, with expectations for November and December to see improvement
- Why
- Due to factors such as a good monsoon, GST relief, and a strong marriage season
Key facts
- Expected Sales Growth
- Uptick in sales and volume in the ongoing quarter
- Margin Improvement
- Assisted by benign material prices
- Competitive Intensity
- Higher due to new entrants
- Price Increases
- 1.5-2% cumulative price increases
- Key Players
- Asian Paints, Kansai Nerolac, Berger, AkzoNobel India
- Market Share
- Major players control over three-fourths of the market
- New Entrants
- Pidilite with Haisha Paints, Grasim with Birla Opus, JSW Paints
- Growth Factors
- Good monsoon, GST relief, strong marriage season
Quotes
Amit Syngle
MD & CEO of Asian Paints
“The industry, in Q2, just grew about 3.5-4 per cent. So, it's not been something which has been really great. Monsoon was the spoilsport, and the festive window was also small.”
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“We are also seeing that as we go ahead, there is a very strong marriage season which is going to provide support. We have had good monsoons which would augur well for possibly some growth in terms of the rural markets. And finally, I think GST corrections would create an uptick in the consumption.”
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Pravin Chaudhari
Managing Director of Kansai Nerolac Paints
“So we are hoping that in November and December, we will see some kind of uptick. But I think looking at the trend that we are seeing, I believe quarter 4 should be far better in terms of the growth prospects, both for decorative and industrial.”
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“...we are facing very heavy competition in decorative (segment). So, as far as we are concerned, while we are definitely going to protect our decorative market, which we are trying to do through the last two quarters, we will make calculated investments in our strong markets and improve our product mix and not getting into products that are actually low or almost zero profits. So that's a clear strategy.”
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Abhijit Roy
MD & CEO of Berger Paints India
“With demand picking up, we expect that with the pent-up demand being there, sales should improve.”
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“...the type of market share that they (new players) were taking away from the industry, that will get moderated completely, and the impact, therefore, will be less on the existing players going forward.”
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Rajiv Rajgopal
CMD of AkzoNobel India
“I see next quarter definitely as a double-digit growth quarter for volumes and high single-digit for revenue.”
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Sources
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