New player will always need more dealers: JSW Paints CEO
Paint

New player will always need more dealers: JSW Paints CEO

One of the most recent entries in the paints industry, JSW Paints, expects its revenue to double from 10,000 million in FY22 to 20,000 million in FY23 and to reach 50,000 million by FY26.

The company had difficulties when some of its dealers closed shop within a year, which affected it more when it first started, making its journey in the paints sector difficult. Although it had complained to the Competition Commission of India (CCI) about unfair business practises by one of its competitors, the agency rejected its complaint in a final ruling.

In the National Company Law Appellate Tribunal, the company has now contested the CCI's order.

Sundaresan said when questioned about the CCI directive, "As a new entry, you would always have to open many more than an old company, how else could you catch up on a competition's network of 70,000+ dealers and we could not even add 1,000 dealers in the first year."

This declaration follows a ruling that stated Asian Paints was not preventing JSW Paints from entering the market.

JSW had informed the regulatory body that Asian Paints had targeted dealers, distributors, and retailers working with JSW Paints in 2019 right after the start of its decorative paints division.

In 2019, JSW informed CCI that its rival Asian Paints had threatened to cease supplying some dealers and instructed dealers to stop doing business with JSW. Along with other things, it demanded that dealers take JSW Paints product displays down from their retail shelves and threatened to deny them discretionary discounts.

Sundaresan responded to CCI's claim that his business had added more dealers than its rivals by saying, "We are a company that opened only that year (2019), and if you open some dealers and they close that same year, it is extremely devastating to us as a new company. When compared to a well-established competitor, for whom the dealers who closed their doors may have been opened over the past 75+ years, this is used to calculate net adds, leading to the conclusion that our net additions were higher.

One of the most recent entries in the paints industry, JSW Paints, expects its revenue to double from 10,000 million in FY22 to 20,000 million in FY23 and to reach 50,000 million by FY26. The company had difficulties when some of its dealers closed shop within a year, which affected it more when it first started, making its journey in the paints sector difficult. Although it had complained to the Competition Commission of India (CCI) about unfair business practises by one of its competitors, the agency rejected its complaint in a final ruling. In the National Company Law Appellate Tribunal, the company has now contested the CCI's order. Sundaresan said when questioned about the CCI directive, As a new entry, you would always have to open many more than an old company, how else could you catch up on a competition's network of 70,000+ dealers and we could not even add 1,000 dealers in the first year. This declaration follows a ruling that stated Asian Paints was not preventing JSW Paints from entering the market. JSW had informed the regulatory body that Asian Paints had targeted dealers, distributors, and retailers working with JSW Paints in 2019 right after the start of its decorative paints division. In 2019, JSW informed CCI that its rival Asian Paints had threatened to cease supplying some dealers and instructed dealers to stop doing business with JSW. Along with other things, it demanded that dealers take JSW Paints product displays down from their retail shelves and threatened to deny them discretionary discounts. Sundaresan responded to CCI's claim that his business had added more dealers than its rivals by saying, We are a company that opened only that year (2019), and if you open some dealers and they close that same year, it is extremely devastating to us as a new company. When compared to a well-established competitor, for whom the dealers who closed their doors may have been opened over the past 75+ years, this is used to calculate net adds, leading to the conclusion that our net additions were higher.

Next Story
Infrastructure Transport

Adani Airports Raises $1 Billion for Mumbai Airport Expansion

Adani Airports Holdings (AAHL), a wholly owned subsidiary of Adani Enterprises and India’s largest private airport operator, has successfully secured $1 billion financing through a project finance structure for its Mumbai International Airport (MIAL). The transaction involves issuance of $750 million notes maturing July 2029 (“Notes”) which shall be used for refinancing. The financing structure also includes provision to raise an additional $250 million, resulting in total financing of $1 billion. This framework will provide enhanced financial flexibility for the capital expenditure prog..

Next Story
Infrastructure Urban

Delhivery Expands Gateway Hub to Enhance Capacity

Delhivery, India's largest fully integrated logistics service provider, today announced the expansion of its Chandigarh Gateway Hub. The facility, spread across 2.35 lakh sq ft will accelerate the region’s economic growth and create thousands of direct and indirect work opportunities. It will also empower thousands of businesses in the region, enabling them with access to nationwide markets through improved inventory storage and order fulfillment capabilities."Chandigarh and its surrounding region remain a core market for us. This expansion directly addresses the needs of local businesses, e..

Next Story
Real Estate

Arihant Buys Land in Chennai IT Hub for Rs 12 Bn Housing Project

Chennai-based real estate developer Arihant Foundations & Housing has acquired a prominent 3-acre land parcel on MGR Salai, Perungudi, at the gateway to the city's rapidly growing IT corridor along Old Mahabalipuram Road (OMR). The company plans to develop a premium residential project on the site, with a proposed built-up area of 0.7 million square feet and an estimated Gross Development Value (GDV) of Rs 12 billion.The project is currently awaiting final regulatory approvals before its official launch. Arihant is expected to announce the construction timeline in the coming months.Located..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?