Strong volume growth for Asian Paints in FY19 on improved rural demand

What the Street will keep a watch out for is the ability of the firm to pass on higher raw material costs

After single-digit volume growth in FY18, Asian Paints is expected to see an improvement in volume trajectory in the current fiscal year. The firm, which had been posting upwards of 10 per cent growth in the last two quarters, is expected to end FY19 with 13-14 per cent growth.

This is on the back of improving rural demand, a cut in goods and services tax (GST), and market share gains from the unorganised segment. With over 40 per cent of sales coming from rural markets, and a strong distribution network in the interior markets, a recovery led by higher rural spending