JSW Paints, part of the JSW Group, is eyeing a 10 per cent market share by FY26 as it completes its national foray by entering into the northern and eastern parts of the country.
The company targets a turnover of ₹2,000 crore, banking primarily on rising demand for decorative paints. On Thursday, the company announced plans to enter into West Bengal as part of its foray into the eastern region.
Currently, JSW Paints has a 1.5-2 per cent market share in the southern and western parts of the country.
According to AS Sundaresan, Joint Managing Director, JSW Paints, the company will first eye a 5 per cent market share in the decorative paints segment by FY-23.
“In the next three years, the plan is to take up the market share to 10 per cent with a pan-India presence,” he told media during the launch.
Sundaresan did not reveal the current revenue of the company saying “it was early days”.
Decorative paints make up for around 80 per cent of the ₹40,000 crore overall paints market (including regional players).
The company’s industrial paints division is at break-even and by FY23 the decorative paints segment too should be profitable.
JSW Paints will be focussing on standalone paint stores to expand its distribution and is targeting to double retailer count to 4,000 stores from 2,000 by the end of this year.
Besides, at the group level, a shoppe model is being worked out, where steel, cement and paint from the JSW stable will be sold, targeted towards individual home builders.
“We currently have capacity to be able to cater to the market till FY23 from our Vijayanagar plant (in Karnataka)”, Sundaresan said.
“Thereafter, we will need another plant and we are currently studying locations in north and south India” he added.
According to Sundaresan, the company plans to have a decorative paints plant at Salboni in West Bengal is in the drawing board stage.
A call on setting up the plant will be taken later depending on the demand.
“The pandemic did cause some delay in our plans. But we remain committed to our national foray. A call on West Bengal will be taken at the appropriate time,” he said.
Though not finalised, the probable investment could be in the range of ₹300 crore.
JSW Paints is present only in decorative and industrial paints with some adjacencies like waterproofing solutions.
And according to Sundaresan, in the next three to five years, it will develop paints for the automotive segment.
Thereafter, the company may explore joint ventures with other global players to fully enter the automotive paints segment.