New Delhi: JSW Dulux, which has reported a strong 25 per cent volume growth in the June quarter, expects demand momentum to continue through the upcoming festive season and is targeting double-digit volume growth for the remainder of FY27, said its Joint Managing Director and CEO Rajiv Rajgopal on Wednesday.
Rajgopal said JSW Dulux, formerly known as Akzo Nobel India Ltd, continues to see "fairly strong" growth from a demand perspective, with July also delivering healthy growth despite being a monsoon month.
Also read: JSW Dulux’s profit from retained business doubles on year in June quarter
Looking ahead, he said the company remains optimistic about the festive season and expects demand trends to remain robust.
"We believe that the festive demand is going to be continuously strong. We see no issue there," Rajgopal told PTI.
In the June quarter, the company retained a 25 per cent volume growth, revenue rose 18.8 per cent to Rs 965 crore, and EBITDA increased 14.7 per cent to Rs 115.1 crore, said Rajgopal.
"The demand continues to be strong because the double-digit growth has come across all our businesses, recreative as well as industrial business. Industrial business also grew double-digit in terms of volume, particularly our automotive, industrial coatings, and marine protective had a high single-digit volume," he said.
According to him, premium products have been a key growth driver, with premium category growth also exceeding 20 per cent during the quarter.
On margins, Rajgopal said the company's EBITDA margin in the September quarter is likely to remain in the same range as the June quarter, impacted marginally by a higher mix from non-premium segments and recent hiring of around 160 people across functions.
For the full year, he expressed confidence of closing "closer to about 13 per cent", with a medium-term EBITDA margin target of 13-15 per cent.
JSW Dulux, which aims to be the second-largest player in decorative paints and industrial paints, is focused on improving market share and growing faster than the overall industry, he said.
The company, now part of the USD 23 billion JSW Group, is investing in expansion, brand investments and manufacturing capabilities.
"Now, we are a part of the JSW Group, and we started with a 4.5-4.3 per cent market share. Our first endeavour is to cross 5 per cent and then target 6 per cent in the near term," he said.
Rajgopal said the paint industry is benefiting from a revival in repainting demand, as homes painted during the post-pandemic surge of 2022-23 are entering the next repainting cycle.
"A lot of the repainting has started to come in. As you know, about 85 per cent of decorative paint demand comes from repainting," he said.
He also attributed the positive outlook to improving industrial activity, supported by government-led infrastructure spending and capital expenditure.
On industrial demand, he said improved macroeconomic conditions and the government's capital expenditure push are expected to support growth going forward.
On capacity expansion and integration following the acquisition, Rajgopal said manufacturing synergies are already being implemented, with products being cross-manufactured at different facilities. The company is also evaluating an additional manufacturing footprint to serve eastern markets.
He said integration efforts under an internal programme have already covered manufacturing, supply chain and procurement functions, while pilot projects are underway to determine the most effective retail integration model.
Commenting on industry competition, Rajgopal said competitive intensity remains elevated.
"It is a fight every day," he said, adding that the company is focusing on strengthening brand equity, premium offerings, contractor engagement programmes and customer service to protect and expand its market position.
On raw material costs, Rajgopal said the company remains watchful of crude oil prices and may consider calibrated price increases if input costs rise sharply, though it would continue to follow broader market trends on pricing decisions.
