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ICICI Securities Report
There is considerable reduction in trade schemes and the paint companies have largely reverted to normal trade margins. - that's the insight from our conversations with paint dealers in Mumbai.
They told us - 1. Sales volumes in September 2020 month were 65-70% of normal volumes in Mumbai despite higher rains and impact of late Diwali (on November 14 in 2020 versus October 27 in 2019),
2. Kansai Nerolac Paints Ltd., Nippon etc. are underperforming versus Asian Paints Ltd. (logical as Mumbai is a stronghold of Asian Paints for long),
3. there is significant focus (and sales push) on ancillary products and low-end paints,
4. putty business has potential to become 10 times compared to paints in volume terms, and
5. labour shortage is likely to delay recovery in project business.
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