Kansai Paint Co Ltd. the parent held a India strategy briefing. Key highlights included –
- Given the increasing competitive pressures in the decorative paints market, the Indian business to sharpen its focus on the industrial paints segment to drive growth.
- The goal: to become India’s second-largest coatings company by 2030.
- It aims to maintain its leadership in auto and powder coatings while climbing to the top spot in industrial coatings, where it currently ranks third in the general industrial and high-performance segments.
- By 2030, the auto business—driven by innovation—is expected to account for 35% of the portfolio, up from 30% now. The industrial segment is projected to rise to 25% from 15%. As a result, the decorative business share will reduce to 40% from 55%.
- Target of a revenue CAGR of 9% and an EBITDA margin of 14–15% over the next three years.
- In last 3 years, revenue CAGR was 15% and EBITDA margins were 11-13%.
- By 2030, the Company aims to scale to 10% revenue CAGR and 18% Ebitda margin, driven by premiumisation and cost-optimisation.
The target growth strategy seems naturally aligned with Kansai’s inherent strengths. The projected growth numbers seem reasonable and prima facie achievable.