Akzo Nobel CMD Rajiv Rajgopal Expects Double-Digit Volume Growth In FY25
On the impact of new entrants, he said that as Dulux primarily targets the premium segment, it is often less affected by such developments.
Akzo Nobel India Ltd. is set to clock a double-digit volume growth in the fiscal ending March 2025, according to its Chairman and Managing Director Rajiv Rajgopal.
Recently, the maker of Dulux paints started production of powder-coating products from its Gwalior plant. The unit has an installed production capacity of 5,166 tonne per annum, which is expandable on future demands.
"The reason we believe that we can clock a double-digit volume growth (in FY25) is because we believe the value of Dulux in the paints industry is all about being international, best-in-class quality, innovation, and colour expertise. We have got a unique proposition in each of these, which is slightly different from the rest of the industry," Rajgopal told NDTV Profit.
As for the impact of new entrants, Rajgopal said that Dulux primarily targets the premium segment, which is often less affected by such developments.
"Our market share in the premium category is significantly higher than the overall market share. We have got a 15–16% market share in premium alone, and that has been a strength. When a new player enters, typically it is in the mass and economy category. While we are also playing in those segments, we have significantly lower shares there. Hence, there is little to lose," he said.
Rajgopal highlighted that the company has been focusing on building a digital ecosystem and cutting down on inefficiencies to strengthen its brand.
"We make sure that whatever we do, there is a stamp of quality and that’s what we are focused on," he added.
Talking about the impact of the drop in crude oil prices on the paints business, Rajgopal suggested that the development will have to be analysed on a broader scale. Elaborating, he said, "We need to take a bit of a pause and not get too carried away by daily or monthly trends."
On Tuesday, Brent crude hit a 33-month low to below $70 a barrel.
However, Rajgopal added that if the crude oil prices continue to dip, it may have a positive impact on the company’s profit from fourth quarter onwards.
