A canvas of change for the paints sector
SummaryPaint companies might have to sacrifice on margins to protect volumes and this could ultimately hurt the industry’s profit pool.
Rising competition has become a niggling worry for investors in paints stocks, amid fears that the entry of newer companies with deeper pockets could hit the growth prospects of incumbents. Last week, Aditya Birla Group company Grasim Industries Ltd unveiled the much-anticipated brand name of its paints business—Birla Opus. The commercial launch is scheduled for the March quarter (Q4FY24).