Top paint manufacturers in India have reportedly reduced the paint prices
.webp&w=1080&q=75)
Major paint manufacturers in India have reportedly slashed paint prices. Moreover, recently buyers were witnessed switching to more economical options owing to the market dynamics that favored downtrading. Asian Paints reduced prices by around 4% in Q4FY24, Berger made reductions of 4-4.5% in January, and Kansai Nerolac also lowered prices.
Demand for paint dipped in April and May due to the General Elections in India that were held in June 2024, fewer marriage events, and a decrease in paintable home spaces. Moreover, Birla Opus, a new entrant, further intensified the competition among the paint key players in India. Reportedly, Birla Opus has been making inroads with 7-10% market penetration in certain regions, representing 2-4% of sales at some dealers, impacting sales of Nerolac and Dulux more than Asian Paints.
Lower raw material costs have enabled companies like Asian Paints and Berger to achieve double-digit growth in decorative paints, a trend expected to continue into 2024-25. Grasim is aggressively expanding its dealer network, aiming to surpass Berger's reach by 2024-25, and is committed to capturing a significant market share.
The sector is on track for substantial growth, with projections indicating that capacity could nearly annually by 2026-27, supported by investments totaling approximately ?19,000 crore. This expansion will likely keep competition fierce, prompting further dealer incentives and price cuts by existing companies. The sector's dynamics, particularly in repainting driven by economic and inflation factors, make pricing strategy crucial.
Read More About Crude Oil Production Cost Reports - Request Free Sample Copy in PDF
Moving forward, paint companies are focusing on brand building, marketing, and promotions. The financial outlook will also hinge on crude oil prices and the rupee's performance, affecting raw material costs. The entry of well-capitalized new competitors has already affected stock prices, leading to an 8-17% decline this year. With current valuations deemed high amid stiff competition, there could be further downgrades in earnings projections.
Recent News & Articles
Class III Milk Forecast Lifted to $17.00/cwt on Cheese and Whey Strength
Cheese Procurement Outlook: Spot Prices Ease, Annual Forecasts Rise
Coconut Oil Procurement Outlook Improves as Export Supply Grows
Rapeseed Oil Supply Outlook Improves as Canada Stocks Rise
Sunflower Oil Supply Rebuild Coming as Ukraine Output Jumps 19 Percent
Tags
- Access independent price trends and market intelligence for thousands of raw materials.
- Request customised production cost and prefeasibility reports for specific plants or locations.
- Explore subscription dashboards for continuous tracking of prices, indices, and news.
- Commission bespoke research on categories, suppliers, or trade flows tailored to your brief.
Our Team will be happy to assist you
We are Just a Text away
