Moneycontrol
May 12, 2017 04:06 PM IST | Source: CNBC-TV18

Hopeful of good revenues in home improvement biz: Asian Paints

The Mysuru Plant of 300,000 KL per annum should come on stream by October 2018, said KBS Anand, MD & CEO, Asian Paints.

Paints manufacturer Asian Paints posted 10 percent rise in Q4 net profit at Rs 479.6 crore against Rs 435.5 crore during the corresponding quarter last year.

The company said that India’s decorative business registered low double-digit growth in Q4, but it saw strong performance in markets such as Nepal, Fiji, Oman, Bahrain and Jamaica. It also saw good demand conditions in auto OEM and general industrial business.

KBS Anand, MD & CEO, Asian Paints said the low double-digit volume growth is likely to be sustainable if the economy grows in a similar manner.

On the margin front, he said they would likely improve due to the two price hikes, which were to the tune of 5.7 percent, but it would also depend on how the rupee plays out and the raw material prices trend.

Talking about the home improvement business that saw a 19 percent growth in Q4, he said they are hopeful of revenue growth for the current fiscal too but it is a very small nascent business. It also correlates to the construction sector and so the extent of growth depends on the growth in the construction business, he said in an interview to CNBC-TV18.

When asked about acquisitions in the home improvement business, he said they are not looking at anything in the very near-term but if something good falls into their lap, they would lap it up. There aren’t too many players in this business that fits into their scheme of things, he added.

Talking about capacity addition in the paint business, he said the Mysuru Plant of 300,000 KL per annum should come on stream by October 2018.

For entire interview, watch video

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