Asian Paints Limited

The price decreases of 3.7% had a notable impact on Asian Paints' financial performance in Q4 FY2024, leading to a slight decline in overall value delivery. While the company achieved a volume growth of 9% for the fiscal year, the price reduction resulted in a value growth rate of only 3%, with Q4 specifically reflecting a value drop of -1.8%. This indicates that despite strong volume performance, the pricing strategy affected revenue generation, highlighting the challenges faced in maintaining value amidst competitive pricing pressures.

Asian Paints' Q4 FY2024 earnings conference, held on May 9, 2024, highlighted several key achievements and strategic initiatives. The company reported a robust volume growth of 9% for the fiscal year, maintaining double-digit growth over the past four years. Despite a price decrease of 3.7% impacting overall value, Asian Paints achieved a revenue growth rate of 3% for FY24. Significant accomplishments included strong performance in the Industrial business and an expansion of retail points to over 163,000, enhancing market reach. The launch of innovative latex technology for low-cost emulsions and plans for a greenfield project in Madhya Pradesh with a capacity of 400,000 KL/annum by

Asian Paints has introduced several innovative products and initiatives in 2024 to strengthen its market presence. Notably, the company launched a new latex technology for low-cost emulsions, which offers enhanced durability and coverage at a price comparable to traditional distemper products. This innovation targets the bottom of the pyramid market, estimated at around ₹5,000 crores, and has already begun to show strong volume growth since its launch in January 2024. Additionally, Asian Paints is expanding its capacity through a greenfield project in Madhya Pradesh, aiming for a production capacity of 400,000 KL per annum by 2028. This strategic move, along with ongoing brownfield projects at existing plants, underscores the company's commitment to innovation and market expansion

Asian Paints demonstrated impressive performance for the financial year ending March 31, 2024, achieving a volume growth of 9%. This marks a continuation of their strong trend, with double-digit volume growth maintained over the past four years. However, the company faced challenges in value growth, which was impacted by a price decrease of 3.7%, resulting in an overall value growth rate of 3% for FY24. Despite these challenges, the robust volume growth reflects Asian Paints' strong market position and effective strategies in both the economy and luxury segments.

Asian Paints has ambitious future capacity expansion plans, highlighted by a significant greenfield project in Madhya Pradesh, which aims for a production capacity of 400,000 KL per annum by 2028. This facility is set to be one of the largest automated capacities globally. In addition to this greenfield initiative, Asian Paints is also enhancing its existing operations through brownfield projects at its plants in Kasna, Khandala, Ankleshwar, and Mysuru, increasing overall capacity from 1.7 million KL to approximately 2.27 million KL per annum. These strategic expansions reflect Asian Paints' commitment to sustaining double-digit volume growth and meeting rising market demand effectively.

Asian Paints is strategically addressing challenges in the premium market segment by focusing on expanding its retail presence and enhancing product innovation. The company has successfully increased its retail points to over 163,000, significantly boosting market accessibility. This extensive distribution network allows Asian Paints to maintain a competitive edge, even as it faces downtrading from premium to economy segments, particularly in rural areas. To counteract the slowdown in the premium segment, Asian Paints is also investing in innovative product development. The recent launch of new latex technology for low-cost emulsions targets the bottom of the pyramid market, providing a durable alternative at competitive prices. This initiative not only aims to capture market share but also reinforces Asian Paints' commitment to sustaining double-digit volume growth across all