Indigo Paints, known to introduce differentiated products in the market, has added 670 new dealers in the first quarter of the current financial year. The company aims to achieve the active dealer count of 17,000 by the end of this financial year. Despite COVID-19 led disruptions, IPL added 2,000 active dealers during the last financial year.
In Q1FY2022, IPL added 328 tinting machines taking the total to 5,800 tinting machines as of the end of the first quarter. IPL targets to have 8,000 tinting machines by FY2022-end. Last year IPL had added 1,200 tinting machines.
The company has established its distribution network gradually and strategically through the bottom-up approach. To create demand for its differentiated products, IPL initially taps tier 3, tier 4 cities, and rural areas, where brand penetration is easier and dealers have greater ability to influence customer purchase decisions. IPL subsequently leverages on this network to engage with dealers in tier 1 and tier 2 cities and metros as well.
IPL has maintained its focus on increasing in penetration in the markets where it has attained certain scale by using its bottom-up approach. It has strong presence in states of Kerala, West Bengal, Bihar, Jharkhand, Chhattisgarh, Odisha and Uttar Pradesh. In these states, the company has already expanded its footprints in tier 3, tier 4 cities and rural areas and focusing on expanding its reach in tier-1 and tier-2 cities.