Asian Paints and Berger’s earnings will show if people will risk renovators inside their homes— until then its sanitisers to the rescue
Asian Paintsown about 38.87% of the paint market share in India, whereas Berger Paintsown a little over 12%.
- Goldman Sachs reported that the continued lockdown due to the coronavirus pandemic and people’s distrust in letting others into their homes, will hit paint sales.
- Berger Paints earlier last month decided that it is going to produce sanitiser commercially and entering home and personal hygiene space across the country.
This time along with the coronavirus crisis, the prolonged monsoons and floods in different states impacted decorative paints adding to woes of the paint makers. Yet, the two stocks have ridden a wave of hope over in the last one month.
AdvertisementGoldman Sachs had also downgraded Asian Paints rating earlier as the analysts think home renovation is not going to be on people’s minds anytime soon. With the fear of the virus and adherence to social distancing norms, Indian households are reluctant to allow painters in the house immediately.
The green-zone volumes picked up in the first week after lockdown, but it shrank once pending work was completed, according to a dealer volume check by B&K Securities.
According to Statista, Asian Paints own about 38.87% of the paint market share in India, whereas Berger Paints own a little over 12%.
The plan B for paint makers
With most key events such as marriages and functions on hold, the demand may remain dull in future for paints, according to analysts. Berger Paints earlier last month decided that it is going to produce sanitiser commercially and entering home and personal hygiene space across the country. The move came after other paint giants like Asian paints and JSW Paints became the first two paint majors to invest in the idea. And, within a fortnight Asian Paints developed a capacity of almost 12,000 kilo-litre a year.
India’s sanitiser market is expected to touch ₹500-crore mark this year— all thanks to the coronavirus woes. In the times of new normal, paint companies are expecting a good demand for the health and hygiene ranges. Berger paints also introduced its antimicrobial powder coatings for usage in the medical industry to restrict the spread of infection as much as possible.
AdvertisementIn another desperate move, Asian Paints along with Ogilvy India launched a new campaign ‘The Nosy Neighbours’ to highlight the brand’s safe painting service. The campaign features a few painters who come equipped with safety gadgets like coveralls, masks, gloves, safety goggles, sanitisers to paint the house.
SEE ALSO: No layoffs, Asian Paints will give salary increments to boost employees morale
Asian Paints’ shareholders had a fear that Goldman Sachs just confirmed— Indians will not rush to do up their homes
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