JSW Paints wants to grow and expand aggressively

Parth Jindal-led JSW Paints is expanding its footprint to northern and eastern regions to become a pan-India player and has plans to go public by 2025. The company is also setting up operations in the Middle East and Italy.“Last year we were only present in the South. This year we have launched in the West, and now we are launching in the North and in the East, and by Diwali, we will become a pan-India player,” managing director Jindal said.The company is also planning to invest aggressively in new projects and acquisitions in the near term, aiming to attain a market share of 10% from the current 1.5% and become the third largest player in India over the next few years, said the son of JSW Group chairman Sajjan Jindal.“We want to grow and expand aggressively … If we achieve our plans this year, then JSW Paints will become larger than Indigo Paints from a revenue standpoint. We want to become the third largest player in the country,” Jindal said.Asian Paints, Berger Paints and Kansai Nerolac are currently the top three players in the segment.JSW Paints focus currently is on expanding the brand and market share, and profitability is not an immediate priority. It is also not aiming to become profitable till next year, Jindal said, “…because we are using all the surplus cash flows into developing our brand and developing our retailer footprint and developing capacities.”The current target to turn a net profit is fiscal 2024, and the right time for an initial public offering will be closer to 2025, “when we have a significant market share”, he said. In fiscal 2021, the company had posted revenue of about ₹450 crore. “This year we are targeting to close the year at around ₹1,100 crore,” he said. JSW Steel, while announcing its quarterly results last week, said it would be investing around ₹750 crore in JSW Paints to acquire about 6.88% of JSW Paints’ issued equity capital.

from Economic Times https://ift.tt/3eYN6Qd