The country’s largest paints maker Asian Paints aims to become a Rs1 lakh crore revenue company in the next decade, said MD and CEO Amit Syngle.
Syngle, in an exclusive conversation with CNBC-TV18, said the strategy is to offer almost everything that goes into a home. “We’ve got into lighting, we’ve got into UPVC (unplasticized polyvinyl chloride) doors and windows, we’ve got into wooden flooring, kitchen and bath is already with us. We’ve gotten to fabrics and furnishings. And, therefore, as we go ahead, we are always on the lookout for something which really synergizes in terms of our strategy to make it big to that extent,” he said.
The goal is to increase the mind share of the brand and look at influencing not just the bottom of the pyramid but even the luxury space, which has immense growth potential with rising disposable incomes, Syngle noted.
Syngle’s plan is to keep the margin within the 18-20 percent band and invest the rest in brand building, as per the CNBC-TV18 report. He identified services as a key area where most paint companies currently lag. Services involve providing end-to-end painting solutions with expert consultations. Syngle said, “Our endeavour is that the service brand should become 10 percent of the overall revenue of Asian paints as we go ahead.”
For the December quarter, Asian Paints reported a net profit of Rs 1,475 crore, compared to a CNBC-TV18 poll of Rs 1,410 crore. On a year-on-year basis, the net profit was up by 34.5 percent. Revenue for the period stood at Rs 9,104 crore. Asian Paints reported a 5.4 percent topline growth during the quarter compared to the same period last year.Over the past year, Asian Paints’ shares have surged by over 4 percent and have a market capitalisation of Rs 2,81,438.22 crore.