Conversation With One Of India’s Largest Paint Dealers: ICICI Securities Insight

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.With increase in input prices, the profitability of smaller / unorganised players continues to be under stress. Their ability to incentivise the trade (higher than larger peers) continues to be impacted. Hence, there is accelerated formalisation of paints industry in FY21, which continues in FY22 - that's the insight from our conversation with one of India’s largest paint dealer of (large) brands (also engages in manufacturing and marketing). He told us, phasing out of price hikes in three to four tranches has helped the trade to absorb the price hikes and there is negligible impact on off-take, while the premiumisation trend is likely to continue, distempers are still ~15% of market and will continue to exist due to demand from real estate developers and rural consumers, while many paint companies are offering free tinting machines, it is likely to remain key competitive advantage as there is space constraint, at-least in urban markets..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Conversation With One Of India’s Largest Paint Dealers: ICICI Securities Insight

Conversation With One Of India’s Largest Paint Dealers: ICICI Securities Insight

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