Mumbai-based Asian Paints aims to become a ₹1 lakh crore revenue company in the next decade, said MD and CEO Amit Syngle. In an exclusive conversation with CNBC-TV18, Syngle spoke about growth outlook and opportunities for the company.
Syngle said the strategy is to offer almost everything that goes into a home. “We’ve got into lighting, we’ve got into UPVC (unplasticized polyvinyl chloride) doors and windows, we’ve got into wooden flooring, kitchen and bath is already with us. We’ve gotten to fabrics and furnishings. And, therefore, as we go ahead, we are always on the lookout in terms of saying that is there something which really synergizes in terms of our strategy in terms of making it big to that extent,” he said.
Goal
The goal is to increase the mind share of the brand and look at influencing not just the bottom of the pyramid but even the luxury space, which has immense growth potential with rising disposable incomes, he noted.
Syngle’s plan is to keep the margin within the 18-20% band and invest the rest in brand building.
He identified services as a key area where most paint companies currently lag, and Asian Paints’ plan to become an outlier in that space. Services involves providing end-to-end painting solutions with expert consultations. “Our endeavour is that the service brand should become 10% of the overall revenue of Asian paints as we go ahead.”
Within the paints business, the industrial paints category is expected to grow to 7-8% of the business from 4-5% now.
Backward integration for growth
The company is also focusing on backward integration for growth and 12% of the total revenues currently come from new and innovative products.
Asian Paints holds the top position in India’s paint industry in terms of market share. It serves as the parent company for Berger International. The company’s manufacturing footprint spans across 15 countries globally, with significant operations in India, the Indian subcontinent, and the Middle East.
For the December quarter, Q3FY24, Asian Paints reported domestic volume growth of 12% compared to the same quarter last year. The company said that growth was supported by an extended festive season, although there was some moderation in demand for the latter part of the quarter.
