InvestorQ : Do you see a major impact on paint stocks like Asian Paints and Berger from the entry of Grasim into paints segment?
Anamika Sodhani made post

Do you see a major impact on paint stocks like Asian Paints and Berger from the entry of Grasim into paints segment?

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Angel dcosta answered.
2 months ago
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On the one hand, paint stocks have concerns and that is reflected in the sharp fall in prices. It could be disruptive like what Jio did to telecom. Asian Paints and Berger have positioned themselves as home solutions providers not just paint sellers. That has given them a unique brand and FMCG type valuations. The worry for Asian Paint is not about losing market share but about losing that premium valuation they command. It could get more commoditized.

However, it is too early for the Cassandras to come calling. In India, paints are still a very personal choice as it reflects the personality of the people living in the house. So OEM demand will not kill the home solutions market. Having said that, a lot will depend on how Asian Paint rethinks its offerings. When Jio came, many players were ejected from the market, but Bharti Airtel is much stronger than before. There is enough space for multiple players in the paints industry. But for now, paints surely are in a real state of flux!

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