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
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
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
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
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
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
- 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
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
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
- 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
#FMCGisLife @CNBCTV18Live
9/9
You May Also Like
The entire discussion around Facebook’s disclosures of what happened in 2016 is very frustrating. No exec stopped any investigations, but there were a lot of heated discussions about what to publish and when.
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
The story doesn\u2019t say you were told not to... it says you did so without approval and they tried to obfuscate what you found. Is that true?
— Sarah Frier (@sarahfrier) November 15, 2018
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.