Sheenlac Paints Ltd. has drawn up a two-pronged strategy to double market share and revenue over the next few years, according to a top official.
“Over a period of three years, we are planning to double our market share in decorative paints from 30% to 60% in the southern States and more than double our revenue to ₹1,000 crore in five years,” said Sudhir Peter, managing director.
Of the total portfolio, decorative paints account for 30% of revenue, wood coatings 40%, industrial coatings 10% and floor coating, 4%.
“An increase in the market share of decorative paints to 60% will not bring down the revenue of wood coatings or other products. We will achieve the target by opening more dealerships in tier 3 cites,” he asserted.
During FY20, the company had registered a turnover of ₹440 crore but this year, the COVID-19-led lockdown had impacted sales in April and May. From June, sales volume had begun recovered and has now crossed the pre-COVID-19 level.
The firm expects Q4 to be even better, enabling it to achieve ₹500 crore in turnover, he said. “We expect to hit the ₹1,000-crore target well before schedule as we are growing at 15% to 16% year-on-year,” he added.
On IPO plans, he said Sheenlac would enter the market only after achieving ₹1,000 crore revenue.
“We also plan to take the inorganic route for growth and are reviewing takeover offers from a few small players. At this point, we don’t need funds and we are not in a hurry,” he said.
In mid-2016, Sheenlac formed a JV with Jenson & Nicolson to market the latter’s decorative paints mainly in the eastern and north eastern markets. In the JV (Jenson & Nicolson Paints Pvt. Ltd.) Sheenlac holds 49% stake.