New Delhi: Paint maker AkzoNobel India is accelerating its participation in the mass market and value segments, while strengthening its premium product portfolio amid renewed competitive intensity, according to its chairman and managing director Rajiv Rajgopal.
AkzoNobel's strategy for India is aligned with changing socio-economic and consumer demand with a strong focus on sustainability and innovation, Rajgopal said in the company's latest annual report.
"As we continue to strengthen our premium product portfolio with differentiated offerings and investments across our operating segments, we are accelerating our play in mass market and value segments, as well as increasing our breadth of play in adjacent categories," he told shareholders. .
The company is now leveraging AkzoNobel's global brands, expertise and innovations with empowered decision-making and faster speed to market acting as a tailwind to its profitable growth drive in India.
The company has entered FY25 "with confidence and optimism" and is "aware of the renewed competitive intensity" in the Indian paints market.
The Indian paints industry, which is one of the fastest growing, has become highly competitive with the entry of new players. In the last 4-5 years, several new players including Aditya Birla Group, Pidilite, JSW Group and others have entered the segment.
AkzoNobel India, which operates under the Dulux brand in the home furnishing segment here, "is future-ready on all fronts," he said.
The company is "committed to delivering strong performance that further leverages our profitable growth momentum" in FY25 and beyond, Rajgopal said.
For the financial year ending March 2024, AkzoNobel India's operating income was Rs 3,961.6 crore, which is the "highest ever" for the company. It is seeing double-digit profitable momentum over the past five years.
On the market, Rajgopal said there are abundant opportunities in the Indian paints and coatings industry.
"Driven by fresh investments and sustained demand from both industrial and end-user segments, the Indian paints and coatings industry continues to record vibrant growth," he said.
The government's focus on affordable housing and infrastructure development, strong real estate demand and higher per capita income are driving new demand. While the shorter repaint cycle and increase in new consumers in Tier 3 geographies and beyond are some of the key reasons why sectoral growth prospects remain strong, he added.
"This attractiveness of the sector has also given rise to new entrants in the market," Rajgopal said, adding that "his company continues to strengthen and is ready to meet the requirements and expectations of Viksit Bharat."
However, AkzoNobel also warned and said that any fluctuations in raw material prices and strict environmental regulations regarding volatile organic compounds (VOCs) will likely hamper market growth.
According to the Indian Paints Association, the paints and coatings industry in India is estimated to be worth $8.5 billion and a volume of 6.3 million MTPA. In this, the architectural sector accounts for almost 70 percent of the paints industry and is the largest segment, while the industrial segment accounts for 30 percent of the total consumption, he added.
AkzoNobel's strategy for India is aligned with changing socio-economic and consumer demand with a strong focus on sustainability and innovation, Rajgopal said in the company's latest annual report.
"As we continue to strengthen our premium product portfolio with differentiated offerings and investments across our operating segments, we are accelerating our play in mass market and value segments, as well as increasing our breadth of play in adjacent categories," he told shareholders. .
The company is now leveraging AkzoNobel's global brands, expertise and innovations with empowered decision-making and faster speed to market acting as a tailwind to its profitable growth drive in India.
The company has entered FY25 "with confidence and optimism" and is "aware of the renewed competitive intensity" in the Indian paints market.
The Indian paints industry, which is one of the fastest growing, has become highly competitive with the entry of new players. In the last 4-5 years, several new players including Aditya Birla Group, Pidilite, JSW Group and others have entered the segment.
AkzoNobel India, which operates under the Dulux brand in the home furnishing segment here, "is future-ready on all fronts," he said.
The company is "committed to delivering strong performance that further leverages our profitable growth momentum" in FY25 and beyond, Rajgopal said.
For the financial year ending March 2024, AkzoNobel India's operating income was Rs 3,961.6 crore, which is the "highest ever" for the company. It is seeing double-digit profitable momentum over the past five years.
On the market, Rajgopal said there are abundant opportunities in the Indian paints and coatings industry.
"Driven by fresh investments and sustained demand from both industrial and end-user segments, the Indian paints and coatings industry continues to record vibrant growth," he said.
The government's focus on affordable housing and infrastructure development, strong real estate demand and higher per capita income are driving new demand. While the shorter repaint cycle and increase in new consumers in Tier 3 geographies and beyond are some of the key reasons why sectoral growth prospects remain strong, he added.
"This attractiveness of the sector has also given rise to new entrants in the market," Rajgopal said, adding that "his company continues to strengthen and is ready to meet the requirements and expectations of Viksit Bharat."
However, AkzoNobel also warned and said that any fluctuations in raw material prices and strict environmental regulations regarding volatile organic compounds (VOCs) will likely hamper market growth.
According to the Indian Paints Association, the paints and coatings industry in India is estimated to be worth $8.5 billion and a volume of 6.3 million MTPA. In this, the architectural sector accounts for almost 70 percent of the paints industry and is the largest segment, while the industrial segment accounts for 30 percent of the total consumption, he added.
