Paint sector remains a fierce battleground in India: Asian Paints CEO Syngle

India’s paint war is far from over, Asian Paints said, as it aims to improve execution and strengthen its brand at a time rivals are doubling down on expansion to capture market share.

“Overall, the competitive intensity will remain in the market and I think we have all the players kind of putting their best foot forward in terms of what they are doing,” Amit Syngle, managing director & chief executive officer (CEO) of Asian Paints, said during a post-earnings interaction with analysts on Wednesday.

However, the country's largest paint company fell short of calling out an all-out price war in the industry, unlike its nearest rival Berger Paints. In an earlier interview with Mint, Berger Paints' MD and CEO Abhijit Roy acknowledged the disruption caused by the Aditya Birla Group-backed Birla Opus, which entered the market in 2024.

“They’ve (Birla Opus) woken everyone up, shaken everyone up—and everyone is running faster. It’s a good thing to have happened to the industry," he said.

Syngle said that Asian Paints' work on execution, brand building, especially regionalisation, and innovation will continue and it will help the company gain ground.

Through regionalization, Syngle said the company tailored its approach to suit different parts of the country, designing campaigns and products that resonated with local cultures and preferences.

He added, “We introduced regional packs, a major logistical exercise and something very difficult for any other player to replicate.”

“The market leader plans to continue investing heavily in branding and advertising with a sharper regional focus, though specific details were not disclosed. The company is stepping up efforts to regain market share, while also prioritising dealer retention,” said Manoj Menon, head of research at ICICI Securities.

Better-than-expected quarter

Asian Paints reported better-than-expected net profit for the September quarter, driven by double-digit volume growth in the decorative business and industrial segment.

The Mumbai-headquartered paintmaker’s September-quarter profit rose 43% year-on-year to ₹993.59 crore, according to the company’s exchange filings. The net income beat the expectations of 11 analysts polled by Bloomberg, who estimated a profit of ₹894.46 crore.

The company reported their earnings a few minutes before the market closed. Asian Paints shares closed 4.5% higher at ₹2,773.40 apiece on the BSE on Wednesday.

Revenue from operations stood at ₹8,513.70 crore during the quarter, 6.4% higher from a year ago. The company declared an interim dividend of ₹4.5 per equity share for the fiscal year 3035-26. The record date to establish which shareholders are entitled to receive the interim dividend has been set for 18 November, with payments to be made to shareholders on or after 27 November.

An abnormally longer monsoon season this year weighed on the company’s revenue and profits sequentially, which declined by about 5% and 10%, respectively.

“This was a quarter of focused innovation, good execution and regionalisation of initiatives, resulting in a strong performance,” said Syngle in a company statement. “This growth was driven by our ability to generate demand across urban and rural areas through various regional activations and intense marketing /brand building measures.”

He said that the company experienced an enhancement in their domestic decorative sector, achieving a double-digit volume growth of 10.9% and a 6% rise in value, despite the difficulties presented by a lengthy and widespread monsoon.

The double-digit growth in decorative paints came after six quarters, according to the company’s investor presentation.

"Growth was further accelerated by enhanced performance in our Automotive and Industrial Protective Coatings segments, contributing to an overall 6.7% value growth in the domestic coatings business. In the International business, we delivered double-digit revenue growth, led by key markets in South Asia, the Middle East and Africa. While the Home Décor business continues to navigate headwinds, our progress with Beautiful Homes stores is promising," said Syngle.

Syngle during the analyst conference call acknowledged that the demand conditions for the entire industry “have not been very great” and dampened by monsoons and in the first half it has grown about “3%-3.5% overall”.

However, the company is betting on “a very strong marriage season which is going to provide support,” and “good monsoons which would kind of augur for possibly some growth in terms of the rural markets” and finally goods and services (GST) corrections to lead to an uptick in consumption.