Asian Paints Limited
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Overall industry demand has been down, and newer brands have not significantly impacted the market. Employee costs have risen due to corrections in sick leave policy and an increase in staffing to expand distribution and retail points, particularly in rural areas.
The construction segment has slowed down recently, but the housing sector remains important, particularly in the premium luxury segment. Government infrastructure projects and factory expansions are expected to support B2B business growth.
We delivered 7% volume growth, and with inflation adjustments, the value growth is around 1.5%. We expect double-digit volume growth for the upcoming quarter, supported by improved rural demand and the festive season.
We aim for a 5-6% gap between volume and value. Price increases due to inflation should help maintain this gap.
The increase in employee costs is due to adding staff for expanding our footprint and distribution. We are also focusing on optimizing other expenditures. Some costs will remain fixed, but we will look for optimization opportunities.
We have not taken any price cuts recently. The negative mix is around 7% this quarter, but we are targeting a 5-6% band for volume and value growth going forward.
The bottom of the pyramid segment, particularly distempers, has performed well. However, the Economy Emulsions segment has faced stress, while waterproofing and premium luxury emulsions have shown decent growth.
We are adding 18-20 stores annually, focusing on a unique model that takes time to establish. We are also expanding into new categories like automated blinds, which enhances our core paint business.