Monsoon Dampens Paint Makers' Profits Amidst Fierce Market Competition
The early arrival of the monsoon and aggressive pricing by new market entrants have significantly impacted the profits of leading paint manufacturers in the June quarter. However, urban demand shows signs of recovery, and with Diwali approaching, better performance is expected in August and September.
- Country:
- India
Leading paint manufacturers are feeling the heat this year as the early monsoon and fierce market competition have taken a toll on their June quarter earnings. Companies like Asian Paints and Berger Paints reported that the unanticipated weather patterns disrupted business operations.
Despite the setbacks, there is a silver lining as urban demand is showing signs of recovery. Asian Paints mentioned improved performance in urban markets and anticipates a better quarter ahead, particularly with Diwali festivities on the horizon. Meanwhile, Berger Paints reported modest volume growth.
Competition remains intense as new entrants aggressively challenge existing brands. Akzo Nobel India discussed the competitive pressure facing the top players, stressing a need for strategic adaptation. Yet, the industry's progress was somewhat hindered by monsoon-associated delays in construction activities.
(With inputs from agencies.)
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