As competition in the paints sector – especially in decorative paints space – gets intense, market leader Asian Paints is emphasising innovation, distribution expansion, and sustainability to stay ahead in the race. The strategy comes amid a challenging FY25 marked by demand slowdown and aggressive pricing from new entrants like Grasim Industries and JSW Paints. The company ruled out resorting to price war to protect its 54% market share in India’s ₹70,000 crore paint industry.
Outlining the strategy in an analysts call, Amit Syngle Managing director and CEO of Asian Paints, said Asian Paints is doubling down on product durability and customer trust.
The company recently extended warranties—from 4 years on interior paints to 25 years for rooftop waterproofing—without raising costs. “Warranties are a de facto quality marker. Our formulations are chemistry marvels,” Syngle said, highlighting R&D efforts to absorb warranty-related expenses through backward integration and raw material efficiencies.
With 1.69 lakh retail touchpoints, Asia’s largest paint manufacturer plans to deepen rural penetration while leveraging digital tools like salesforce for dealer management. “Our network is unmatched. We are investing in AI-driven colour visualization (Chromacosm) and 1,000+ colour consultancies to appeal to Gen Z,” Syngle added.
Despite inflationary pressures, Asian Paints reported an 18.6% standalone EBITDA margin in Q4 FY25, aided by deflation in raw materials like titanium dioxide. Syngle attributed this to backward integration projects, including a ₹3,000 crore emulsion plant and a ₹2,000 crore vinyl acetate monomer facility.
“These projects will bolster margins, allowing us to reinvest in brand-building,” he noted.
Syngle acknowledged FY25 as one of the “worst years” for the industry, with organized decorative paints seeing negative growth. However, he expressed cautious optimism for FY26, citing government infrastructure spending, rural demand revival (supported by monsoon forecasts), and premium housing growth. “Mid-luxury housing and second homes are bright spots,” he said.
On competition, Syngle ruled out price wars: “We focus on sustainable value, not discounts.” He emphasized premiumization through initiatives like the 5,300-shade Chromacosm system and 25-year warranties.
The company targets single-digit revenue growth in FY26 and maintains its 18–20% consolidated EBITDA margin guidance. Capex for FY26 is projected at ₹7,000–8,000 crore, focusing on capacity expansion and technology upgrades.
In the fourth quarter of FY25, Asian Paints reported underwhelming results with revenue contracting by 4.3% lower, net profit fell by 45% year-on-year (YoY). During the fourth quarter, profit came at Rs 692.1 crore from Rs 1,256.7 crore in the corresponding period last year.