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Business Standard
2 hours ago
- Business
- Business Standard
Aditya Birla Group's paints unit files antitrust case against Asian Paints
Aditya Birla Group's Indian paints venture has filed an antitrust complaint against market leader Asian Paints for allegedly abusing its market position, three sources said, a case that could lead to a stand off between the two industry rivals. Asian Paints is India's biggest player with a 52% market share, but it has lost some of its dominance after Birla Opus launched in February 2024 and grew rapidly to garner a near 7% market share by March this year, Elara Capital data shows. The Competition Commission of India (CCI) has in recent weeks been reviewing a confidential complaint filed by Birla Opus alleging abuse of its position by Asian Paints, said the two sources, who declined to be named as the discussions are private. The CCI is yet to decide if the complaint holds merit and needs a broader probe by its investigations unit, or should be dismissed. One of the sources familiar with the matter said the allegations from Birla say Asian Paints had asked its retail dealers to not stock the rival's products and had warned of restricting their credit facilities if they do so. Birla Opus, the paints arm of the Aditya Birla Group company Grasim, did not respond to Reuters queries. The group is led by billionaire Kumar Mangalam Birla, India's seventh richest person ranked by Forbes. Asian Paints and the CCI did not respond to Reuters queries. Reuters is first to report the antitrust case, details of which - in line with watchdog's policy - are not made public. The first source added that Asian Paints also allegedly told its dealers it will curtail its supplies to them if they put up hoardings of Birla paint products or place them at prominent places. Asian Paints has not been told about the case, according to a source with direct knowledge. But it had received some media queries and has told the CCI in a confidential letter - seen by Reuters - that the company must be allowed fair comment before any decision is taken. "The rapid and substantial growth of Birla Opus demonstrated the absence of any significant barriers to entry or anti-competitive conduct by existing players," Asian Paints letter to the CCI stated. Birla has expanded its paints business in the $9.5 billion sector, starting last year with an investment of $1.2 billion, with five plants operational now. Asian Paints clocked revenues of 294 billion Indian rupees ($3.43 billion) in 2024-25, and has 26 factories globally. In 2022, the CCI closed a case filed by JSW Paints against Asian Paints for abusing its market position, saying it found no contravention of competition laws. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Upturn
3 days ago
- Business
- Business Upturn
Most Popular Paint Brands in India (June 2025)
Explore the leading paint brands in India as of June 2025, highlighting their market presence, product offerings, and industry impact. By News Desk Published on June 3, 2025, 13:42 IST The Indian paint industry is a vibrant and competitive sector, with several brands vying for consumer attention. As of June 2025, the market is witnessing dynamic shifts due to innovation, strategic expansions, and evolving consumer preferences. This article delves into the most popular paint brands in India, examining their market positions and offerings. 1. Asian Paints Overview: Established in 1942, Asian Paints is India's largest paint company, commanding a significant market share. Established in 1942, Asian Paints is India's largest paint company, commanding a significant market share. Key Offerings: Known for products like Royale, Tractor Emulsion, and Apcolite, catering to both interior and exterior needs. Known for products like Royale, Tractor Emulsion, and Apcolite, catering to both interior and exterior needs. Recent Developments: Despite facing increased competition, Asian Paints continues to lead with innovative solutions and a vast distribution network. 2. Berger Paints Overview: Founded in 1760, Berger Paints is a prominent player in the Indian paint industry. Founded in 1760, Berger Paints is a prominent player in the Indian paint industry. Product Range: Offers a wide array of products including Silk, Easy Clean, and WeatherCoat. Offers a wide array of products including Silk, Easy Clean, and WeatherCoat. Strategic Moves: The company is expanding its footprint through strategic partnerships and an extensive dealer network. 3. Kansai Nerolac Paints Background: Part of the Japanese Kansai Paint Group, Nerolac has a strong presence in India. Part of the Japanese Kansai Paint Group, Nerolac has a strong presence in India. Product Portfolio: Specializes in decorative and industrial coatings, with a focus on eco-friendly solutions. Specializes in decorative and industrial coatings, with a focus on eco-friendly solutions. Market Position: Continues to be a significant competitor, leveraging technological advancements and sustainability. 4. Birla Opus New Entrant: Launched in 2024, Birla Opus & Birla Opus Prime is a subsidiary of Grasim Industries. a well-established name in the Indian manufacturing sector. Despite being a new player in the market, Birla Opus has quickly made its mark with a unique approach to paint solutions. Launched in 2024, Birla Opus & Birla Opus Prime is a subsidiary of Grasim Industries. a well-established name in the Indian manufacturing sector. Despite being a new player in the market, Birla Opus has quickly made its mark with a unique approach to paint solutions. Market Impact: In a short span, Birla Opus has experienced impressive growth, rapidly capturing a significant market share. It has quickly risen to become the second-largest decorative paints player in India by capacity. The brand's success is a testament to its high-quality products and strong consumer demand. The company's swift expansion speaks volumes about its market acceptance and potential for continued success. In a short span, Birla Opus has experienced impressive growth, rapidly capturing a significant market share. It has quickly risen to become the second-largest decorative paints player in India by capacity. The brand's success is a testament to its high-quality products and strong consumer demand. The company's swift expansion speaks volumes about its market acceptance and potential for continued success. Strategy: Birla Opus stands out with its aggressive pricing strategies, making its premium wall paint products accessible to a wide range of customers. The company has also adopted strategic plant placements, ensuring efficiency and accessibility across regions. These moves, combined with innovative product offerings, have allowed Birla Opus to establish a solid foothold in the competitive Indian paint market. Their rapid rise reflects not only strong financial backing but also a deep understanding of consumer needs and preferences. 5. Akzo Nobel India (Dulux) Company Profile: A subsidiary of the Dutch multinational, Akzo Nobel India is renowned for its Dulux brand. A subsidiary of the Dutch multinational, Akzo Nobel India is renowned for its Dulux brand. Product Highlights: Offers premium products like Dulux Velvet Touch and Dulux Super Clean. Offers premium products like Dulux Velvet Touch and Dulux Super Clean. Recent Performance: Faced challenges due to rising raw material costs, impacting profitability. 6. Indigo Paints Introduction: Established in 2000, Indigo Paints has rapidly gained market share. Established in 2000, Indigo Paints has rapidly gained market share. Innovations: Known for introducing unique colors and finishes, appealing to modern consumers. Known for introducing unique colors and finishes, appealing to modern consumers. Growth Trajectory: Continues to expand its presence across India, focusing on quality and customer satisfaction. 7. Shalimar Paints Legacy: With over 120 years in the industry, Shalimar Paints is one of India's oldest paint manufacturers. With over 120 years in the industry, Shalimar Paints is one of India's oldest paint manufacturers. Product Offerings: Provides a range of decorative and industrial paints, known for durability. Provides a range of decorative and industrial paints, known for durability. Recognition: Recently honored as the Most Trusted Brand of India for 2025-26, reflecting its strong consumer trust. The Indian paint industry is characterized by intense competition and innovation. Brands like Asian Paints, Berger Paints, and Kansai Nerolac continue to lead, while newer entrants like Birla Opus are making significant strides. Consumers have a plethora of options, each offering unique products tailored to diverse needs and preferences. News desk at
Mint
29-05-2025
- Business
- Mint
Intense competition hurts paint companies' profitability; more pain in the offing
Competition in India's paints sector is becoming cut-throat amid subdued demand. To protect their market share, incumbent paint companies are enhancing brand visibility and distribution, hurting the sector's profitability. The aggregate Ebitda margin of five key listed paint makers fell year-on-year for the fifth consecutive quarter in Q4FY25, showed IIFL Securities data. The reading declined 123 basis points (bps) year-on-year to 15.9%. This means the benefit of benign input cost, which aided gross margin expansion, was offset by higher operating costs. Other expenses and staff costs in Q4FY25 increased almost 110bps and 50bps year-on-year, respectively, according to IIFL. Also read: LIC's growth perils curb stock's valuation Asian Paints Ltd led the decline in the sector's profitability. Its Ebitda margin eroded by 219 basis points year-on-year in Q4FY25, hurt by higher marketing expenses. Operating margins of Kansai Nerolac Paints Ltd and Akzo Nobel India Ltd also contracted. With competition expected to remain intense, Asian Paints has said it will focus on strengthening brand salience. New kid on the block Grasim Industries Ltd's Birla Opus is catching up quickly. Grasim's management claims Birla Opus has become the third-largest brand in the Indian decorative paints industry less than six months after it began pan-India operations. So far, Birla Opus has launched a range of 176 decorative products with more than 1,250 stock keeping units (SKUs) across categories. Also read: NTPC's project execution delays remain its Achilles heel With the launch of its fifth plant at Mahad in Maharashtra, Birla Opus's overall capacity has risen to 1,096 million litres per annum (mlpa) – representing a 21% share of the organised paints sector – of the planned total capacity of 1,332 mlpa. Grasim has maintained its revenue guidance of ₹10,000 crore within three years of full-scale operations – that is, by FY28. Birla Opus achieved its target of high-single-digit market share and is targeting double-digit market share in FY26. Besides, the recent acquisition of Akzo Nobel India Ltd by JSW Paints Ltd could fuel competition further. Some are bucking the trend – but for how long? On the other hand, Berger Paints India Ltd and Indigo Paints Ltd saw their Q4FY25 operating margins expand year-on-year. Cost control measures helped Berger, while Indigo's margin got a boost from a reduction in ad spends, but this is not sustainable in a dynamic industry. Berger's management acknowledged an increase in competitive intensity. Now, despite Birla Opus opening a plant in east India – a key market for Berger – the latter doesn't expect any major change in its market share. Grasim's sixth plant at Kharagpur in West Bengal will be commissioned in the first half of FY26, with trial production likely to commence in Q1FY26. Paint companies are defending their turf with price cuts, but more is required. 'Dealers' checks show that Grasim has priced products 5-10% lower than peers in some categories, so incumbents will need a lower pricing to beat that. Paint companies took around 5-12% price cuts in FY25 and we expect more price cuts in FY26," said Amit Agarwal, senior vice president, fundamental research, Kotak Securities. Profitability for the sector could remain under pressure in FY26 and FY27, with competition likely to peak in FY27, he cautioned. Also read: JK Cement beats peers on a critical parameter, but watch out for party poopers 'In FY25, operating margin of established paint companies at an aggregate level is estimated to have declined by 300 basis points year-on-year to around 17%," said Poonam Upadhyay, director, Crisil Ratings. She anticipates an additional compression of 100-150 bps in FY26. Another round of de-rating? Meanwhile, paint stocks have delivered mixed returns over the past year. Asian Paints and Berger stocks both trade around 50 times estimated FY26 earnings, showed Bloomberg data. Valuations have moderated, especially since Grasim's entry led to a de-rating in paint stocks. Demand for decorative paints is likely to remain muted in H1FY26, owing to an earlier-than-expected monsoon. If demand fails to improve in H2FY26 (the festive season), paint stocks could see another round of de-rating.
Time of India
24-05-2025
- Business
- Time of India
Grasim Industries' profit rises 9.2% to ₹2,973.3 crore in Q4 FY25
NEW DELHI: Aditya Birla Group 's flagship holding firm Grasim Industries Ltd reported a 9.23 per cent rise in its net profit to Rs 2,973.26 crore for the March quarter of FY25, and revenue from operations grew 17.33 per cent to Rs 44,267.26 crore. The company has reported a net profit of Rs 2,721.81 crore for the March quarter of FY24, and its revenue from operations stood at Rs 37,727.13 crore, according to a regulatory filing by the company on Thursday. Grasim reported a decline of 21.85 per cent in its net profit to Rs 7,756.33 crore for the financial year ended March 31, 2025, due to investments in the building Materials business. The company has posted a net profit of Rs 9,925.65 crore in FY24. Grasim's revenue from operations rose 13.36 per cent to Rs 1,48,477.89 crore, reaching an all-time high, according to the company. The total consolidated income of Grasim, which controls companies as UltraTech , Aditya Birla Capital and businesses such as textiles, chemicals and Building Materials, stood at Rs 1,49,936.93 crore, marking an increase of 13.4 per cent from Rs 1,32,242.58 crore in FY24. "Specifically, the Building Materials and Financial Services businesses delivered a robust performance. EBITDA for the year stood at Rs 20,023 crore, down by 4 per cent Y-o-Y due to initial investments for building a strong consumer-facing Paints business, Birla Opus ," it said. However, profit after tax (PAT) declined due to "higher interest and depreciation charges on account of investments in the Building Materials business," the company said. During the March quarter, Grasim's revenue from its Cellulosic Fibre business rose 7.68 per cent to Rs 4,050.93 crore. "Domestic sales volumes of CSF (Cellulosic Staple Fibre) grew by 4 per cent Y-o-Y, though overall CSF sales volume stood flat. CFY business recorded volume growth of 3 per cent Y-o-Y, however, realisations remained under pressure due to higher low-priced imports from China on a Y-o-Y basis in an already weak demand market," it said. Its revenue from its Building Material business reported a growth of 20.62 per cent to Rs 25,232 crore from Rs 20,918.55 crore in the January-March quarter a year ago. Grasim's 'Building Materials' comprises its cement business UltraTech, its newly launched paints business Birla Opus and its B2B e-commerce business Birla Pivot. "Growth in the cement business (UltraTech) was driven by higher sales volumes, up 17 per cent Y-o-Y to 41.02 million tonnes (Mt). Ready-mix concrete sales volumes grew by 19 per cent Y-o-Y," it said. Similarly, Revenue from the financial services segment -- Aditya Birla Capital Ltd (ABCL) rose 16.3 per cent to Rs 12,196.79 crore from Rs 10,483.77 crore in the March quarter a year ago. "Total AUM (AMC, life insurance and health insurance) stood at Rs 5,11,260 crore, up 17 per cent Y-o-Y. The business D2C platform, ABCD (Aditya Birla Capital Digital), which offers a one-stop solution for a range of financial services fulfilling customers' financial needs, has witnessed a strong response with about 5.5 million customer acquisitions (till Apr-25)," it said. Grasim's revenue from other businesses, which includes Textiles, Renewables, and Insulators was also up 13.67 per cent to Rs 897.85 crore in March quarter. The board of Directors of Grasim has recommended a dividend of Rs 10 per equity share of Rs 2 for the year ended March 31, 2025. Over the outlook, Grasim said its standalone business is undergoing a "strategic transformation, marked by a decisive foray into consumer-facing and digital ventures, in decorative paints and B2B E-commerce for construction materials". "The rapid scale-up of these verticals signals the emergence of robust new growth engines in a fast-evolving economic landscape. These new high-growth businesses are now well poised to complement Grasim's legacy of manufacturing-led growth," it said.
Time of India
23-05-2025
- Business
- Time of India
Birla Opus becomes second-largest decorative paints player in India by capacity
Birla Opus , the paints business of Grasim Industries , has climbed to the second spot in India's decorative paints industry by installed capacity, with its footprint now reaching 1,096 million litres per annum (MLPA), according to an investor presentation by the Aditya Birla Group on Friday. This comes on the back of the launch of its Mahad plant, pushing Birla Opus closer to its target capacity of 1,332 MLPA. The brand now trails only Asian Paints , which leads the sector with over 1,850 MLPA. The company is also preparing to start operations at its sixth plant in Kharagpur, with trial production scheduled for the first quarter of FY26 and commercial production expected within the same fiscal year. The brand has already secured a 21% share of the organised industry's decorative paints capacity , a significant achievement in a market traditionally dominated by legacy players such as Berger Paints , Kansai Nerolac , and AkzoNobel India. Also Read: Reliance looks for $1.3-billion gloss finish to its exit from Asian Paints To date, the Aditya Birla Group has commissioned five plants across Panipat, Ludhiana, Cheyyar (near Chennai), Chamarajanagar, and Mysuru. 'Total capex spent stood at Rs 9,352 crore as on March 31, 2025, which is 94 per cent of the total project cost,' the company noted. Grasim had first announced its foray into the paints business in August 2021, with an initial investment of Rs 5,000 crore, later doubling it to Rs 10,000 crore in May 2022. All six of its greenfield facilities were developed simultaneously and completed without any time or cost overruns, the company added. Despite being a new entrant, Birla Opus has swiftly gained market traction, reporting a revenue market share of over 10% in the decorative segment. 'It has witnessed strong quarter-on-quarter revenue growth, reaching high single-digit market share in the Decorative Paints market in Q4FY25,' Grasim said. India's decorative paints market, currently estimated at Rs 72,000 crore, is projected to grow 10% annually over the next decade, driven by housing demand, urbanisation, and a shift towards premium offerings. However, the per capita paint consumption in India remains low at 3.5 kg per annum, significantly below the global average of 10 kg, indicating substantial growth headroom for players like Birla Opus. With inputs from PTI
