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With a meagre two per cent pan-India share in the decorative paints category, Shalimar Paints, known for its focus on the industrial segment, is now betting big on the decorative paints to drive growth. “We want to reposition ourselves. The company wants to strengthen its position in the consumer segment and to achieve it, we have taken a lot of initiatives. We are going for capacity enhancement of decorative paints and our upcoming plant near Chennai will cater to it,” said Sameer Nagpal, managing director and chief executive officer, Shalimar Paints. Shalimar Paints’ new facility is coming up at Gummidipoondi near Chennai at an investment of Rs 72 crore, of which Rs 44 crore will be invested in the first phase. The plant will be commissioned by the last quarter of this fiscal, Nagpal said.
After years of neglect, the paints company jointly promoted by Ratan Jindal and Hongkong based business tycoon Girish Jhunjhunwala, is rebooting strategies, aiming at better visibility among consumers.
Despite enjoying the un-stinted patronage of iconic structures like the Rashtrapati Bhawan and Howrah Bridge, Shalimar Paints in the last two decades, has missed the bus to establish the right connect with the consumers.
“We are on a comeback trail. But unlike our competitors, our focus will be on product rather than on colour and emotion,” said Nagpal. Every 3-4 months, we will launch a new product. We are also strengthening our network with our distributors and painters. Our short-term focus will be to enhance our engagement with the dealers and painters", said Nagpal.
Quoting a study by Indian Paints' Association, he said the impact of brand influence on consumers is only four per cent while the influence of dealers and painters is 13 per cent and 51 per cent respectively.
The size of the paints industry is estimated at around Rs 40,000 crore with Asian Paints, Berger Paints and Nerolac occupying the top three slots.
Asked on the company's growth plans, he said, "The industry is growing at the rate of 12-15 per cent every year. We want to grow much higher than the market average".
On the company's Rs 100 crore equity infusion plans, Nagpal said, "We are moving ahead on it. We are open to get the funding from any source, be it PE (private equity) or other routes".
Nagpal refused to spell out the details, citing the constraints of a listed company.
The company launched its new products in the Odisha market- the No 1 Silk interior emulsion offering high scrub resistance, smooth matt finish and excellent coverage. The other product- Super Shaktiman exterior emulsion equipped with silicon additives offers excellent durability and protection against all climatic conditions.
