Winners - Asian Paints

Asian Paints, India´s largest and Asia´s second largest paint company, has maintained its position of being a leader in the paint industry with a market share of 53 per cent, in spite of intensification of competition in the industry. The company, along with its subsidiaries, has operations in 19 countries across the world. It has a strong dealer network of over 40,000 across India, which is nearly double the country´s number two player - Berger Paints - in the decorative segment. It derives ~81 per cent of its topline from the decorative segment, while the rest comes from the industrial segment. The company intends to open 50-75 Color Idea stores every year. It currently has over 300 Color Idea stores and is now strongly focusing on the Tier-III and Tier-IV cities, especially in the east and northeast region. On a consolidated basis, it reported a growth of 9.5 per cent in topline of Rs 15,330.72 crore in FY2016, as against Rs 14,005.33 crore in FY2015. However, net profit grew at 24.7 per cent at Rs 1,779.27 crore as against Rs 1,427.33 crore during the same period, thanks to cheap raw materials. Asian Paints has grown its revenues by 60 per cent from Rs 9,598 crore in FY2012 to Rs 15,331 crore in FY2016. However, its net profit grew much faster at 74 per cent in the same period. What´s more, the company is planning to set up greenfield manufacturing facilities in Vizag and Mysore. The Vizag plant will be 50,000 kl capacity and put up in phases over 12 years with a total capex of Rs 1,785 crore. These expansions will enable the company grow faster in the next three years.