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%
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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
5/n
TINTING MACHINE
- Dealers keeping a paint company's tinting machine is among the biggest barriers of entry
- Tinting machines cost 1-1.5 lk per machine and need space at a dealer's store
- 2 out of 3 Asian Paints dealers already have tinting machines
#FMCGisLife #Asianpaints
6/n
BRANDING
Asian Paints spends 900-1000 Cr on Advertising every year
For Ref: Indigo Paints’ FY22 Revenue alone was 906 Cr
We all know the brand recall from Gattu, to Wah Sunil Babu, to Har Ghar Kuchh Kehta Hai and the more recent - Abhi Toh Aur Chalega ads!
#FMCGisLife
7/n
ASIAN PAINTS
Would you believe it? Among the large paint players, it's actually the youngest company
Year of Establishment
Shalimar 1902
Nerolac 1920
Berger 1923
Akzo 1939
AsianPaint 1945
#FMCGisLife #AsianPaints #Grasim
8/n
VALUATIONS
- Quality comes at a steep price
- Co is among the most expensive stocks on all parameters
- Co's Market Cap at 10X FY22 sales
- MCap at 4X FY24e Entire Paint Industry
FY23e PE
Asian Paints 70X
Indigo 61X
Berger 50X
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@CNBCTV18Live 9/9