India’s largest paints maker, Asian Paints, is not worried about the incoming challenge from Pidilite, the country’s largest producer of adhesives including the iconic brand, Fevicol, which is all set to enter the decorative paints business.
“I don’t think that it is something which is going to shake the market in anyway,” Asian Paints’ Managing Director & CEO Amit Syngle said in an interview with CNBC-TV18.
Pidilite is not the only challenger to Asian Paints. Kumar Mangalam Birla-owned Grasim, JSW, Nippon, Kamdhenu, Shalimar, and Indigo have joined the ring where more established players like Berger and Kansai Nerolac are already fighting for space while Asian Paints (founded in 1942) controls nearly 60% of India’s organised paints market.
According to Syngle, even if the new players add 3-4 percent market, or rake in “Rs 2,000 crore to Rs 4,000 crore sales in 2-3 years, it won’t disrupt the industry”.
The current turnover of India’s paints industry is estimated at somewhere between Rs 60,000 crore to Rs 70,000 crore (about $850 million), according to Pidilite, and is growing at well over 10% each year.
The CEO of Asian Paints expects the company’s own revenue to be between Rs 50,000 crore and Rs 55000 crore by the financial year ending March 2026. This would compare to the Rs 34,488 crore raked in by the company (founded in 1942) in the full-year ending March 2023. Courtesy: www.cnbctv18.com