Asian Paints is counting on a sharper regionalisation strategy to revive growth as competition from rivals Birla Opus and JSW Paints heats up. Asian Paints is now pushing regional colour preferences as well as introducing water-proofing solutions in regional packs across eight to nine states, MD & CEO Amit Syngle told analysts recently.
The initiative, in the preliminary stages, will be expanded to more states in the coming months, as Asian Paints looks to defend market share, Syngle said.
“The whole area of regionalisation is something we are making very big. We believe that today this is a kind of a strategy which will give us a lot of strength and a lot of brand equity from the point of view of customer centricity,” Syngle said.
Backdrop of Asian Paints’ latest move
The Asian Paints latest move comes as Birla Opus increases distribution to 8,000 towns, backed by 137 depots, according to sector analysts. Asian Paints is estimated to have a distribution reach of 8,500 towns, backed by about 145-150 depots.
Birla Opus is estimated to have a market share of about 5-7% in two years. While Asian Paints remains the market leader with an over 50% share in decorative paints.
To maintain its lead in decorative paints, Asian Paints will also step up marketing intensity, and push its presence in home decor and B2B paints, Syngle said.
The company is also expected to prioritise topline growth over margins as input prices such as titanium dioxide, a crude derivative, remain benign for now. Asian Paints delivered operating margins of 20% in Q3FY26, higher than the 19% number reported a year ago.
What did Amit Syngle (Asian Paints MD) say?
“We want to spend a large amount in terms of (marketing spends) on our (painting) services, so that we can make it stronger. At the same time, the focus on premiumisation will continue. A lot of energy will go into some of the newer products in our portfolio; what we would like to launch in the market and create the required excitement for it,” Syngle said.
While Asian Paints Q3 numbers were weak, seeing a consolidated profit decline of 4.6% due to exceptional items and a consolidated revenue growth of just 4%, volume growth in the India decorative business was about 8% during the period. The India decorative business gives Asian Paints 80% of its overall revenue.
Syngle said that the company saw volume growth staying in the 8-10% band in Q4, while margins were expected to remain in the 18-20% band during the period.
“With the kind of competitive intensity, we are seeing, we will continue with our brand-building initiatives. Marketing impetus is a big imperative for us,” he said.