Home Brand Updates Kamdhenu to follow asset light strategy in paints business too

Kamdhenu to follow asset light strategy in paints business too

Kamdhenu is one of the recent entrants into paints business. But the brand is not new to the building materials industry as Kamdhenu structural steel is widely used in affordable housing project. Though the company is the largest supplier of TMT bars for affordable houses, it follows assets light strategy and the company is planning to follow the same strategy in its paints business too. So, it will be following the policy of less of own production and more of outsourcing.

Currently the paint business is supported by a self-owned manufacturing facility for 30,000 KLPA capacity at Alwar, Rajasthan which will be increased by 7500 KLPA in FY22 and an outsourced facility at Udaipur with 36,000 MTPA capacity.

To meet its aspirations, Kamdhenu plans to enhance its paint capacity by FY23. While its outsourced manufacturing facilities are presently located in Northern India, it is scouting for outsourced manufacturers across the country (especially South) in order to remain competitive by saving on logistic costs.

Presently, both its steel and paints businesses are carried on under the same umbrella but the company is looking to demerge the paints business along with the colour coated sheets vertical in due course.

The company’s growth was hampered due to a fire at its Alwar factory in FY20. However, the facilities have been completely restored since then and the company is now raring to go.

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