ADVERTISEMENT

ICICI Securities: Conversations With Paint Dealers

Dealers are likely to focus more on Asian Paints’ products to achieve their targets, ICICI Securities says in a research report.



Akzo Nobel paints on sale at Thiry Paints store in Brussels, Belgium. (Photographer:Paul O’Driscoll/Bloomberg News.) 
Akzo Nobel paints on sale at Thiry Paints store in Brussels, Belgium. (Photographer:Paul O’Driscoll/Bloomberg News.) 

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

ICICI Securities Report

Asian Paints Ltd. has reduced the ‘trade scheme’ (discounts) to 3-5% from 5-6% earlier.

Also earlier the dealers were getting benefits based on actual purchases. Now the scheme is linked to certain targets.

We expect dealers to focus more on Asian Paints’ products to achieve targets (and avail schemes) - that's the insight from our conversations with paint dealers in Mumbai.

They told us,

1. Project business is severely impacted as construction workers, painters stay in distant suburbs and due to closure of public transport, they are not yet able to commute to Mumbai city,

2. waterproofing has performed well, however, on a smaller base,

3. All paint depots and dealers are operational now but with off-take level of 50-60% in July-August 2020, and

4. There were no new launches and/or pricing actions in July-August 2020.

Click on the attachment to read the full report:

ICICI Securities Worms World View Paints.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.