Paintmakers flag competition and pricing pressure, pin hopes on Q4 demand recovery
New Delhi: India’s leading paint makers expect competition to remain intense over the next few quarters, even as demand and volume growth show signs of recovery heading into the March quarter, with margins likely to stay stable.
Top executives of Asian Paints, Kansai Nerolac, Berger Paints and AkzoNobel India said during their earnings calls that sales were impacted in October due to a shorter festive season and an extended monsoon, but improved steadily in November and December.
Despite these headwinds, companies remain cautiously optimistic that cyclical recovery, infrastructure spending and stabilising consumption trends will aid volume growth.
Asian Paints MD and CEO Amit Syngle said competitive pressures continue with no visible signs of easing. He emphasised the company’s focus on structural cost efficiencies rather than relying on raw material price corrections or price hikes to protect margins.
The market leader reported high single-digit volume growth in the December quarter despite festive and weather-related disruptions. Syngle said demand across retail, B2B and industrial segments is expected to remain steady in the near term, though evolving consumption patterns in discretionary categories warrant close monitoring. He indicated that clearer signs of improvement may emerge over the next one to two quarters.
Kansai Nerolac MD Pravin Chaudhari said the company witnessed a sharp recovery in November and December after a muted October due to the shorter Diwali period. He expressed hope that the renewed growth momentum would continue in Q4. Citing the RBI’s outlook, Chaudhari noted that construction activity is expected to sustain momentum, while GST-driven demand could support growth in the fourth quarter. He added that expansion in infrastructure projects such as railways, roads, airports and power, along with steady growth in the automotive segment, would boost demand for industrial and high-end coatings. However, he acknowledged that competitive intensity remains high.
Berger Paints MD and CEO Abhijit Roy said demand has improved sequentially each month since October. While October was negative, November turned marginally positive, with December and January showing further gains. He said the company remains focused on revenue growth and maintaining gross margins within its guidance range. Roy expects competition to stay elevated with no significant shifts in market share trends. He added that continued investments in branding, distribution expansion and urban initiatives are essential to capitalise on any demand uptick.
AkzoNobel India CMD Rajiv Rajgopal echoed similar sentiments, saying competitive intensity is likely to persist for a couple of quarters. The company reported a muted October but recorded 8 per cent decorative volume growth in November on a like-to-like basis. Rajgopal expects Q4 to be strong, barring any unforeseen disruptions.
Asian Paints, Berger Paints and Kansai Nerolac together account for over three-fourths of the Indian paint market. In recent years, new entrants such as Pidilite (Haisha Paints), Grasim (Birla Opus) and JSW Paints have stepped up competition in the sector.
