Asian Paints is entering into 300-tonnes per annum PolyUrethane (PU) wood finish category with its new product Opal.
Asian paints has overall market share of 33% and a 40% market share in the organised sector, which includes decorative segment (44%) and Industrial segment (12%). The company sales for FY99 were Rs 10,559 m.
The wood finish market currently is estimated to be worth Rs 150 crores. Currently, non-paint manufacturers like MRF, Vam Organics and ICA dominate this category. Asian Paints is estimating a one third market share in the first year of launch of this new product. It is focussing only in Mumbai and Delhi market, which comprises of 80% of total polyurethane (PU) market. With 15000 retail outlets, it can further penetrate into the rural and the semi-urban markets also.
At present, Asian Paints commands 44% market share in decorative paint segment, which includes enamels and emulsions. It currently has Apcolite Natural Wood Finish under wood finish segment. With one more product, Opal, under this category Asian Paints is not only trying to increase its market share in decorative segment but also is expanding the market base as a whole.
With the advent of the real estate picking up, the demand for decorative paints is expected to grow rapidly, adding to it, is the fact that India has the lowest per capita consumption of paint. The bottomline is poised to increase with the company adding more products to its decorative segment, under various categories.
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