The Hindu Business Line : Asian Paints sees big growth in auto segment

Asian Paints, a Rs 2,500-crore company, expects to record its highest growth rate in the automotive paints segment. Pegging a 25-30 per cent growth, it expects to beef up its share in the Rs 1,400 crore automotive paints segment from the current 12-15 per cent. According to Mr Amit Syngle, GM Marketing, Asian Paints, "The automotive paints segment has seen a boom in the past two years and we expect to grow the fastest in this segment."

With its exclusive and OEM supply contracts with car companies such as Hyundai and GM, the company hopes to bridge the gap with the leader — Goodlass Nerolac — in the automotive segment. Meanwhile it has stepped up its offerings in the architectural and decorative segment, where it is the market leader with more than 50 per cent share.

It recently launched ColourNext 2006 — a range of 15 shades for Indian homes. This year Asian Paints expects to grow 14-15 per cent in the Rs 6,000 crore architectural and decorative segment.

With companies such as Jotun, Akzonobel, Ica and National making a beeline for the Indian market, Asian Paints has been steadily increasing its offerings.

"At the moment we are more than twice the size of our nearest competitor. But we have been seeing the influx of international companies especially in south India." In fact West Asia-based companies such as Jotun and National are making their presence felt in the southern markets. "The south Indian population based in the Gulf countries are familiar with these companies.

Since such companies already have an equity with the south-based consumers they have been entering the southern markets," says Mr Syngle.

Meanwhile Asian Paints has been strengthening its presence in the international markets. With its acquisition of Berger International, it has gained entry into 11 markets.

"Today almost 15-20 per cent of the turnover comes from the international business," says Mr Syngle.

The company has been advertising heavily in mass media with celebrities such as Saif Ali Khan and Akshya Khanna endorsing its products.

"We believe using a celebrity is a means to an end and not the end in itself. No celebrity can be bigger than the Asian Paints brand and we will continue to use celebrities only if they fit into the story of the creative," says Mr Syngle.