Indigo Paints targets 25% annual growth, puts market share ahead of margins

Indigo Paints Ltd is prioritising revenue growth over margins as it spends aggressively to gain market share in India's competitive paints sector. Managing director Hemant Jalan said the company is targeting more than 25% annual revenue growth if the industry expands at 13-14%, and aims to grow at least 10 percentage points faster than the market. The company, which holds about 3% of the decorative paints market, is prepared to accept some margin pressure as it increases spending on trade promotions and influencers, reporting a gross margin of 44.6% in the April-June quarter against an industry average of 41.5%.

Indigo is expanding into wood coatings and waterproofing, where its stake in Apple Chemie India has been raised to 62%, and is evaluating auto refinish. Jalan said the company is open to entering industrial coatings only through acquisitions, and does not plan to raise equity to fund expansion. He noted that competitive intensity remains high, especially with Birla Opus offering deep discounts, but said the price war some expected has not materialised. He does not expect industry-wide price cuts before Diwali unless raw material prices stabilise. Jalan, 68, said a formal CEO appointment could come in 12-18 months as part of succession planning.