Conversation With One Of India’s Largest Paint Dealers: ICICI Securities Insight

Buckets of Asian Paints Ltd. paint at a store in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

Conversation With One Of India’s Largest Paint Dealers: ICICI Securities Insight

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

With increase in input prices, the profitability of smaller / unorganised players continues to be under stress.

Their ability to incentivise the trade (higher than larger peers) continues to be impacted.

Hence, there is accelerated formalisation of paints industry in FY21, which continues in FY22 - that's the insight from our conversation with one of India’s largest paint dealer of (large) brands (also engages in manufacturing and marketing). He told us,

  1. phasing out of price hikes in three to four tranches has helped the trade to absorb the price hikes and there is negligible impact on off-take,

  2. while the premiumisation trend is likely to continue, distempers are still ~15% of market and will continue to exist due to demand from real estate developers and rural consumers,

  3. while many paint companies are offering free tinting machines, it is likely to remain key competitive advantage as there is space constraint, at-least in urban markets.

Click on the attachment to read the full report:

ICICI Securities Worms World View Paints.pdf


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