Nerolac expects muted topline growth this fiscal
Mumbai: Paint-maker Kansai Nerolac Friday said it expects a muted topline growth this fiscal on rising input cost along with the overall slowdown in the economy.
"Last year, we had registered double-digits growth, but we expect a single-digit growth in the topline this fiscal mainly due to uncontrollable reasons like increase in input costs and slowdown in the economy," Kansai Nerolac Managing Director H M Bharuka told PTI.
After launching a marketing campaign called 'Paint the change' here he, however, said the situation may change in the long term.
The company had earlier forecast a 15 percent increase in sales for FY13. In FY12, the company had posted a 22 percent growth in sales at Rs 302 crore as compared to FY11.
"Demand for paint has been poor in industrial as well as auto sectors due to various reasons. The rupee fall has seen that input costs do not come down. This will make the immediate future challenging, but in the long-term, the picture is positive considering that crude prices are stabilising," Bharuka said.
The company currently enjoys around 20 percent share in the over Rs 21,000-crore paints market, he said adding, "We will continue to grow further by bringing in new eco-friendly products. Currently, we are offering eco-clean colours in the decorative segment. Going forward, we would like to introduce lead free products in the industrial and auto sectors."
The company has already invested Rs 600 crore for capacity expansion to ramp it up to 3,70,000 tonne from the current 2,15,000 tonne, he said.
The company has five manufacturing facilities-one each in Maharashtra, Uttar Pradesh and Haryana and two in Tamil Nadu.