Revenue growth for long-established players such as Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel, and Indigo Paints moderated to 4 per cent in FY'24, significantly lower than the 14-15 per cent CAGR recorded between FY'19 and FY'23, CareEdge Ratings said in its study.
Businesses are seeing increased competition from new entrants in various sectors. DMart, Asian Paints, and Pepsi face challenges from new competitors. Investors may suffer in the short term, but customers benefit from price wars. Healthcare competition may not reduce costs despite high medical inflation. Companies are trying new strategies to retain market share.
Asian Paints faced a challenging second quarter with muted demand due to uneven rainfall and a slowdown in metro cities. Despite price hikes, competitive intensity remains high. The company is cautiously optimistic about single-digit volume growth in the coming quarter while closely observing AkzoNobel's strategic review of its India business.
Akzo Nobel, Europe's leading paint manufacturer, is exploring options to either partner with a larger company or sell its Indian operations. Akzo Nobel's aim is to navigate the consolidation in the South Asian paint market. The company currently holds a 5% market share in India with its Dulux brand and seeks a collaborative approach for future growth.
Yu, a consumer foods brand, has secured Rs 55 crore in a Series B funding round led by Ashish Kacholia and Asian Paints Promoter Group. The funds will help Yu expand its food and beverage offerings and increase distribution. The brand currently sells in over 7,500 stores in India and is gaining traction in South Africa.
Major brands like Maybelline, Mountain Dew, and Asian Paints are bringing back their iconic taglines, jingles, and logos to fight competition and capture consumer attention. Maybelline reintroduces its ‘Maybe It’s Maybelline’ jingle with Suhana Khan, while Mountain Dew revives its old logo. Asian Paints re-launches its ‘Har ghar kuch kehta hai’ campaign, aiming to enhance brand loyalty.
Akzo Nobel India has informed that its Dutch parent Akzo Nobel NV is conducting a strategic review of its portfolio to redeploy capital towards growing its core coatings businesses. The initial focus will be on its decorative paints business in South Asia and various strategic options will be explored ranging from partnerships or joint ventures through to mergers or divestments.
Many Indian consumer goods companies, including ITC and Maruti Suzuki, have reduced their R&D spending as a percentage of revenue over the past five years. Despite emphasizing innovation in their reports, only a few have marginally increased their R&D budgets. Reliance Industries remains a top spender in this segment.
Parent Coca-Cola Co will decide if the deal will involve one or two co-investors, or if negotiations lead to creation of an investor consortium. A decision is likely by the end of this fiscal year. ET was first to report on June 18 that Coca-Cola had sounded out a group of Indian business houses and family offices of billionaire promoters to buy into HCCB, an arm it eventually wants to take public to cash in on the bullish domestic capital markets.
Indian paint manufacturers are grappling with declining customer loyalty as consumers increasingly turn to more affordable options. In response, companies have been slashing prices in an effort to regain market share amid intensifying competition. Grasim's paints business, launched in February 2024 under the Birla Opus brand, has dragged its margins as the company continues investing in it.
Dabur's CEO, Mohit Malhotra, announced that the company's factories and stockists in Bangladesh are now operational after a week-long shutdown due to political unrest. Bangladesh contributes less than 1% to Dabur's consolidated revenue and under 0.5% to its profits. Dabur's Bangladeshi subsidiary produces Amla and Vatika hair oils and Odonil air fresheners.
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