According to the market sources, leading paint makers are not losing their sleep over the new entrant’s (JSW Paints) marketing strategies. According to the available information, none of the leading players have lost their market share because of the new entrant’s marketing strategy. In fact, some of the paint manufacturers have gained market share thanks to ongoing shift in market share from unorganised to organised sector.
It may be recalled here that in May, Sajjan Jindal-owned JSW Group had declared its intention to enter paints business in India with JSW Paints. The group had set up India’s largest and fully automated coil coatings facility with an annual capacity of 25,000 kilolitre (KL) and state-of-the-art fully automated only water-based decorative paints plant in India with 100,000 KL annual capacity. Both manufacturing units, at Vijaynagar in Karnataka and an industrial line in Vasind in Maharashtra set up at over Rs 1000 crore are ZLD (Zero Liquid Discharge) units.
JSW is offering a curated portfolio of over 1800 shades and one of the widest and best researched colour ranges in the Indian market. Further, the company had taken a path-breaking step to offer ‘Any Colour at One Price’ in a product, for the first time in India. JSW aims to complete the rollout in South and West markets by September quarter of FY20 with plans to be a pan-India player within three years. JSW Paints aims to be among top three brands in India by 2025 with a market share of 10 per cent.
However, leading paint makers are of the opinion that the new entrant is unlikely to disrupt the market given its limitations in terms of product portfolio, dealer network and manufacturing footprint. Marketmen also feel that in the absence of aggressive strategies like irrational price cuts or higher discounts its very difficult to drive market share gains in India. Even such aggressive marketing strategies are not sustainable over the long term and can impact the overall equity of the brand in the market.