GRASIM
- To grow in paints through the Capacity route by investing 10000 Cr
- Paints is also a brand, distributor, tinting machine game
- Will be interesting to see if Grasim will be able to scale that
#Thread on #AsianPaints industry dominance
1/n
#FMCGisLife @CNBCTV18Live
CAPACITY
Asian Paints capacity at FY20 end was 1.73 Bn Litres
Grasim targets 1.3 Bn litres (~75% of Asian Paints)
Asian Paints Current Capacity > Berger + Kansai + Indigo + Shalimar
#FMCGisLife #AsianPaints #Grasim @CNBCTV18Live
2/n
REVENUE & MARKET SHARE
Asian Paints (No. 1) Qtrly Revenue = Berger Paints (No. 2) Annual Revenue
Asian Paints Annual Revenue is:
3.5X Berger
4.7X Kansai
10X Akzo Nobel
32X Indigo
They're already market leaders and Mgmnt said it increased >140 Bps in 2022
#FMCGisLife
3/n
MARGINS
Even at higher levels of RM Inflation and through all competitive intensity Asian Paints' Margins have been well above the industry
Last 12 months EBITDA Margin:
AsianPaint 17%
Berger 15%
Kansai 10%
AkzoNobel 14%
Indigo 15%
#FMCGisLife
4/n
NOW... THE MOST IMP THINGS
DISTRIBUTION
- Total Reach for Asian Paints now at 1.45 Lk retail points
- Asian Paints Dealers alone as big as the entire industry put together
- They also have 46000 Tinting Machines (equal to entire industry together)
#FMCGisLife #AsianPaints
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