AkzoNobel India to Accelerate Play in Mass Market & Value Segments

New Delhi, Jul 5 (PTI) Paint maker AkzoNobel India is accelerating play in mass market and value segments while strengthening its premium product portfolio amid renewed competitive intensity, according to its Chairman & Managing Director Rajiv Rajgopal.

AkzoNobel's strategy for India is aligned to the socio-economic and consumer demand shifts with a strong sustainability and innovation focus, said Rajgopal in the latest annual report of the company

"While continuing to strengthen our premium product portfolio with differentiated offerings and investments across our operating segments, we are accelerating our play in mass market and value segments as well as increasing our width of play in adjacent categories," he told shareholders.

The company is now leveraging AkzoNobel's global brands, expertise and innovations with empowered decision-making and faster speed to market acting as a tailwind to its profitable growth momentum in India.

The company has entered into FY25 "with confidence and optimism" and is "cognizant of the renewed competitive intensity" in the Indian paints market.

The Indian paints industry, which is one of the fastest growing, has become highly competitive with the entry of new players. In the last 4-5 years, several new players including Aditya Birla Group, Pidilite, JSW Group, and others have entered the segment.

AkzoNobel India, which operates here with the brand Dulux in the home decor segment is "is future-ready on all fronts", he said.

The company is "committed to deliver a strong performance that furthers build on our profitable growth momentum" in FY25 and beyond, said Rajgopal.

For the financial year that ended on March 2024 AkzoNobel India's revenue from operations was at Rs 3,961.6 crore, which is the "highest-ever" for the company. It is having double-digit profitable momentum for the last five years.

Over the market, Rajgopal said opportunities galore in the Indian paint and coatings industry.

"Driven by new investments and sustained demand from both industrial segments and end-users, the Indian paints and coatings industry continues to register vibrant growth," he said.

Government focus on affordable housing and infra development, a robust real estate demand, higher per capita incomes is driving new demand. While shortened re-painting cycle and rise of new consumers in tier 3 and beyond geographies are some of the key reasons why the sectoral growth outlook continues to be robust, he added.

"This attractiveness of the sector has also led to new entrants in the market," said Rajgopal, adding, "your company continues to move from strength to strength and is geared up for meeting the requirements and expectations of the Viksit Bharat."

However, AkzoNobel also cautioned and said, any fluctuations in raw material prices and stringent environmental regulations regarding volatile organic compounds (VOC) are likely to hamper the market's growth.

As per the Indian Paints Association, the paints and coatings industry in India is estimated at USD 8.5 billion in value and 6.3 million MTPA by volume. In this the architectural sector accounts for nearly 70 per cent of the paint industry and is the largest segment, while the industrial segment accounts for a 30 per cent of the total consumption, it added.