Paint companies to see 10-12 per cent rise in revenue
Paint

Paint companies to see 10-12 per cent rise in revenue

According to CRISIL Ratings, the revenue of paint companies will increase by about 10-12 per cent, with improving consumer sentiment and economic recovery resulting in industry growth. The operating margin will decline to about 200 basis points, which is expected to be about 17 per cent, less t...

According to CRISIL Ratings, the revenue of paint companies will increase by about 10-12 per cent, with improving consumer sentiment and economic recovery resulting in industry growth. The operating margin will decline to about 200 basis points, which is expected to be about 17 per cent, less than that of the last fiscal year of about 19 per cent. The reason for this is high crude prices, resulting in a price hike of raw materials in this fiscal. Healthy cash accruals, well-managed balance sheets and large cash surpluses will help keep credit profiles stable.According to Anuj Sethi, Senior Director, CRISIL Ratings, higher spending on home improvement and refurbishing and a gradual increase in the prospects of the real-estate sector may drive revenue of 11 per cent in the decorative segment. This year, revenue recovery is estimated to be more broad-based. Easing of the pandemic will drive growth in urban areas. Further, new opportunities are available with building chemicals, adhesives, wood polish, wall putties and other products that are now being distributed via the same network. These industries contribute less than 5-10 per cent to revenue but help the decorative paint segment to offer more solutions for home decor.Paint manufacturers are undertaking calibrated price growth as demand slowly turns healthy after two years of moderate growth.The Indian paint industry, worth Rs.530 billion, is dominated by organised players who account for nearly 70 per cent of revenue. The organised decorative paint segment has a revenue share of about 77 per cent with industrial paints accounting for the remaining 23 per cent.

Next Story
Real Estate

What Does Home Insurance Really Cover?

Home insurance is one of the most important protections a homeowner can have. It offers financial cover for unexpected damages, losses, or liabilities related to your property. However, many homeowners are not fully aware of what is actually included in their home insurance policy.This guide breaks down what home insurance really covers, so you can be better prepared and make informed decisions.What is home insurance?Home insurance is a financial product that protects your house and belongings against damage, theft, or accidents. It generally includes coverage for the building itself, as ..

Next Story
Infrastructure Urban

Hettich Strengthens Industry Ties at Madhya Pradesh Investment Meet

Hettich India, a global leader in furniture fittings, reinforced its commitment to Madhya Pradesh’s industrial growth as a Guest of Honour at an Interactive Session on Investment Opportunities in Power, Renewable Energy Equipment, and White Goods Manufacturing, hosted by the Government of Madhya Pradesh in partnership with the Confederation of Indian Industry (CII) at Hotel Trident, Nariman Point, Mumbai.The session, chaired by Dr Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, brought together leading domestic and international investors, industry representatives, and business lead..

Next Story
Equipment

Raimondi Names New Saudi Branch Head

Raimondi Middle East has announced the appointment of Ahmad Shakkour as Branch Manager for the Kingdom of Saudi Arabia, reinforcing the company’s commitment to expanding its presence in one of its key regional markets.With Saudi Arabia driving a wave of large-scale infrastructure and urban development projects, Raimondi aims to strengthen its on-ground operations and customer engagement. The company currently has over 100 cranes deployed across the country and continues to expand its technical and service teams to support growing demand.“Saudi Arabia represents a cornerstone of our regiona..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?