"We expect to be among the top 5 paint brands in the next five years"

Kamdhenu Paints is the business vertical of Kamdhenu Group, engaged in the manufacturing, marketing, branding and distribution of a broad spectrum of construction products including steel, paints, and plywood.

Satish Aggarwal, CMD, Kamdhenu Paints, tells Retailer Media how it expects to be among the top 5 paint brands in the next five years as customers are looking for environment-friendly and high performance products.

Tell us about Kamdhenu Ispat and its foray into Kamdhenu Paints.

Kamdhenu Paints is the business vertical of Kamdhenu Group, engaged in the manufacturing, marketing, branding and distribution of a broad spectrum of construction products including steel, paints, plywood. The sales revenue of the company is Rs. 1,011 crore. However, the overall brand turnover of Kamdhenu products is more than Rs. 6,000 crores. The company is having more than 50 franchisee manufacturing units and 4,000 dealers of paint division and 3,500 dealers and distributors of steel, spread across the country. With an aim to deliver the best trusted quality at the best price and leverage the trust and goodwill, Kamdhenu Steel enjoys in the Infrastructure sector, Kamdhenu Paint finds its origin at the highly modernised state-of-the-art own manufacturing unit located at Bhiwadi, Rajasthan.

What is your expectation with Kamdhenu Paints? How much growth do you expect?

We expect it to be amongst the top 5 paint brands in India in the next 5 years.

What do you think has spurred the growth of the Paints Industry?

The reasons that have spurred the growth of the Paints Industry are:

•     Increase in Paintable Area: Proportion of burnt brick houses have been assumed to increase from 48% (total burnt brick houses 157mn) in FY11 to 52% in FY21, pacing up increase in paintable area;

•     Improvement in the Repainting Cycle: In urban area to 3 years and to 4 years in rural area over the next 10 years;

•     Increase in the Share of the Organised Sector: due to deeper reach and brand equity;

•     Growing Demand of Environmental-friendly Products: Stringent regulations and improved consumption standards (with changes in regulatory framework (Environment Health Safety, Volatile Organic Compounds (VOC), Hazardous Air Pollutants (HAP) emissions), customers are looking for environment-friendly and high performance products;

•     Growing Income Levels: Strong domestic adoption and use of branded paints (growing middle class with increasing disposable incomes);

•     Shift in consumer preferences: Changing décor styles, consumers’ willingness to experiment, expecting functional benefits from the product. There has been a progressive a shift in demand for emulsion and economy emulsion in place of low price distempers in urban and rural areas respectively.

•     Increasing Urbanisation: Introduction of smart cities across India;•     Innovative Technology: Installation of tinting machines at dealer point has been a vital step in increasing the penetration and providing the customers with wide choices, hence increasing sales.

What all product range and services are on offer by Kamdhenu Paints?

The products under the umbrella of Kamdhenu Paint include Exterior Emulsions, Interior Emulsions, Acrylic Distempers, Enamel Paints, Cement Paints, Wall Primers & Putty, and Texture & Designer Finishes, Stainers, P.U. Wood Finishes and Metallic Finishes.

The Company has introduced “Kamdhenu Designer Gallery”, a premium luxury wall fashion to give its consumers a good experience of ultimate glamorous lifestyle. The gallery offers exclusive range of latest international trends in wall finishes with a choice of premium vibrant colours, textures and coatings to create a living space that warms the heart.

Is it profitable for Kamdhenu Paints Franchisees?

Yes, it’s very much profitable for our franchisees; they generate 4% to 5% additional profit with their association with Kamdhenu Paints as compared to other paint brands. In a span of the last 3 months, the company already accomplished the spread of their Designer Gallery concept across India and is witnessing very enthusiastic response from all trade partners as well as the end consumers. Without offering good profitability, support, training and tools to our trade partners this would not have been accomplished.

Any future expansion plans in terms of production, fund raising, dealership network and franchise?

In the first quarter of 2015-16, the company has initiated its southern operations by inaugurating branch offices cum distribution centres in the states of Telangana and Andhra Pradesh, followed by Karnataka, Tamil Nadu, Kerala and Pune in West and a dedicated new state-of- the-art production facility catering to the needs of these newly added regions. The Company is also on the tracks of expending its dealer network by taking overall numbers to 7,000 from its current base of 4,000 plus. During the process of production expansion, suitable funds will be raised at an appropriate time.