In a competitive industry landscape where new entrants are vying for market share, Asian Paints’ Managing Director & CEO Amit Syngle stands confident and unbothered. In a comprehensive interview, Syngle made it clear that the influx of new and international players into the paint sector is viewed by the company as a non-threat, citing the enormity of the market and India’s relatively low per capita consumption compared to Western countries.
The emergence of new players in the market is not a novel trend. What’s noteworthy is the attention drawn by heavyweights like the entry of JSW Paints and Aditya Birla group’s Opus Paints, the latter of which is pouring over ₹10,000 crores into their venture. However, Syngle remains steadfast, believing that there is ample opportunity for multiple players to thrive. He points out that the paint market has been consistently expanding, growing at a rate of 10 to 12% CAGR annually.
The strong foundation of Asian Paints lies in the brand’s robust supply chain, wide distribution network, and a culture of relentless innovation in products and services. Syngle asserts that these attributes are more than sufficient to ensure the company’s continued dominance and growth, regardless of market changes. Asian Paints currently enjoys a significant market share of about 60%, an indicator of its towering presence in the industry.
Only recently, Asian Paints launched Neo Bharat Latex Paint, a product specially designed for rural markets, aiming to penetrate a segment estimated to value at ₹4,500 crore. This market has predominantly been catered to by smaller-scale players and distemper products. The introduction of the new paint range could potentially boost the company’s market share by an additional 1%, as projected by Syngle.
In terms of affordability, Asian Paints has priced its Neo Bharat Latex Paint to appeal to a broad audience. Consumers can expect a cost of around ₹5,000 to paint a standard two-room set, a price that includes both the paint and labor charges. This new product offers a selection of over 1000 shades, enabling it to cater to a wide array of consumer preferences.
To support the launch and promote the new category, Asian Paints has brought onboard cricket superstar Virat Kohli as the brand ambassador, further leveraging his popularity and influence across India. Kohli expressed his enthusiasm by associating with a brand that, in his words, is integral to Indian homes, akin to the nation’s beloved sport, cricket. He commends the brand for adding joy and excitement to the lives of Indians.
The introduction of Neo Bharat Latex Paint is a strategic move that signifies one of the most significant launches for Asian Paints to date. Not just presenting a new product, but essentially revolutionizing the industry by introducing an entirely new category of paint. Syngle emphasizes that the wide range of features and color choices is crafted to align with the diverse needs of customers. By targeting the unbranded segment with a quality alternative, Asian Paints seeks to broaden the market while reinforcing its position as a catalyst for growth.
Asian Paints’ approach reflects an understanding that innovation and customer-centricity are key to maintaining market leadership. While acknowledging the competitive environment, the brand opts to view the entry of new players as an opportunity for market expansion rather than a direct challenge to its stronghold. As the Indian economy grows and infrastructural developments continue, the demand for paints is anticipated to rise, offering room for growth for both existing and new market participants. With their sights firmly set on continued innovation and reaching underserved markets, Asian Paints appears to be comfortably positioned to retain its colorful crown in the industry.
