Business Standard

Saturday, December 21, 2024 | 07:41 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Rising costs, competition leave paint sector in need of fresh coat

Festival season may add vibrant strokes to volumes, but margins remain a blank canvas

Increasing disposable incomes, surge in sales of high-end products and rapid urbanisation, among other things, are driving demand for luxury and premium paints. Source: Adobe Stock
Premium

Ram Prasad Sahu Mumbai
Paint companies have lagged behind their consumer peers in the past year. While the four largest listed paint companies have seen marginal negative returns, the S&P BSE Fast Moving Consumer Goods (FMCG) and the National Stock Exchange Nifty FMCG indices have delivered a solid 16 per cent return during the same period.

Initially, volume growth and reduced costs bolstered the sector’s sentiment, but brokerages have grown cautious due to increased competitive pressures.

The entry of new players and the necessity for additional advertising investment are anticipated to impact incumbent players’ profitability.

Worries about slowing volumes and a sharp increase in

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in