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51	51	Aimed at offering complete décor solutions, the company forayed into this space six years ago and have been stepping up its offerings consistently to help its customers create their dream homes. Currently operational in the two categories of kitchen and bath fittings comprising ranges of modular kitchens and sanitaryware. Asian Paints has recently introduced wardrobes. This segment is a focus area for its future growth, as India’s real estate market is slated to grow backed the rising affordable homes segment drive in the country.
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	53	+= Industry review =
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54		-Paint Industry
	55	+== Paint Industry ==
55	55
56		-Industry overview
	57	+=== Industry overview ===
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58		-The domestic paint industry is estimated to be a C 50,000 Crores industry with the decorative paint category constituting almost 75% of this market. The decorative paint market includes multiple categories depending on the nature of the surface like exterior wall paints, interior wall paints, wood finishes, enamels as well as ancillary products like primers, putties, etc. The industrial paint category constitutes the balance 25% of the paint market and includes a broad array of segments like automotive coatings, marine coatings, packaging coatings, powder coatings, protective coatings and other general industrial coatings. The domestic paint industry still continues to have a sizeable 30-35% share of unorganised players which primarily cater to the low end of the
	59	+The domestic paint industry is estimated to be a C 50,000 Crores industry with the decorative paint category constituting almost 75% of this market. The decorative paint market includes multiple categories depending on the nature of the surface like exterior wall paints, interior wall paints, wood finishes, enamels as well as ancillary products like primers, putties, etc. The industrial paint category constitutes the balance 25% of the paint market and includes a broad array of segments like automotive coatings, marine coatings, packaging coatings, powder coatings, protective coatings and other general industrial coatings. The domestic paint industry still continues to have a sizeable 30-35% share of unorganised players which primarily cater to the low end of the product basket. The paint industry continues to see the emergence of small to medium level new paint players who continue to put pressure at the low-end emulsions.
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60		-product basket. The paint industry continues to see the emergence of small to medium level new paint players who continue to put pressure at the low-end emulsions.
	61	+=== Industry trends ===
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62		-
63		-Industry trends
64		-
65	65	Over the second half of the previous financial year, the paint industry had gradually returned to normalcy from the de-stocking effects of the GST roll-out. However, the first half of FY2018-19 was impacted by supply chain disturbances due to the GST rate reduction from 28% to 18% leading to a bit of de-stocking in the distribution channel. The longer festival season ensured that there was good growth in the paint industry in the Sept-Oct period. The paint industry experienced significant raw material price inflation during the year with rising crude prices and depreciating currency and this led to a few rounds of price increases by the industry players to shore up margins. The automotive coatings market is primarily dependent on the auto and two-wheeler industry builds and the significant slowdown faced by the auto-industry impacted the demand conditions for automotive coatings products.
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67	67	Non-automotive industrial coatings market grew at a high single-digit rate during the year under review. While the organised sector was a clear beneficiary of the GST implementation creating level playing field across market segments, demand for industrial coatings remained sluggish due to low manufacturing growth and slowdown in infrastructure and power segments. Overhang of bad debts, rising policy uncertainties ahead of the general elections and lack of progress in unclogging the pipeline of stalled projects brought down the growth in the industry.
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69		-Outlook
	67	+=== Outlook ===
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71	71	The demand outlook would depend on the outcome around the election results, monsoon progress which is crucial for supporting the rural demand and recovery in the construction and automobile sector. The shorter Diwali period will have implications with much lesser households getting repainted this year. Governmentʼs focus on infrastructure development would support the industrial coatings demand. The volatility affecting critical raw materials including crude oil as well as volatility on the exchange rates will need to be critically monitored to cushion the impact on profitability.
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	71	+== Kitchen solutions ==
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74		-Kitchen solutions
	73	+=== Industry overview ===
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76		-Industry overview
77		-
78	78	The kitchen market in India is estimated to be worth more than ₹ 15,000 Crores consisting of the main product categories of hardware, cabinet/shutters, appliances and accessories. Only around 7-8% of this market is controlled by the organised players offering modular solutions, while the rest of the market is with the local unorganised players and local designers/carpenters. Within the overall kitchen market, the hardware category has an estimated market of ₹ 6,000 Crores, the wooden cabinets/ shutters market is estimated at ₹ 5,000-6,000 Crores and appliances and accessories have an estimated market of ₹ 1,000 Crores.
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80		-Industry trends
	77	+=== Industry trends ===
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82	82	In India, a large majority of kitchen installations are undertaken by local carpenters directly or through architects. However, today, consumers are increasingly viewing modular kitchens as aesthetically appealing and space saving. They are ready to pay premium prices for superior quality finishes, top-end designs, latest technology such as soft-closing mechanism, seamless installations and warranty support. The industry is expanding rapidly with global players like IKEA setting base in metros and established organised brands like Sleek increasing presence across Tier II and Tier III cities. Online players are also investing aggressively, leading to a strong shift of consumers from unorganised to organised players.
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84		-Outlook
	81	+=== Outlook ===
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86	86	The kitchen industry is highly fragmented, but offers immense potential for organised players in the long run. As a result, various players from big box retailers to home interiors to online players are setting models for selling modular kitchens. As new players are entering the market, it is not only intensifying competition, but is also leading to expansion of the organised market. In such a scenario, differentiated offerings and delivery of operational expertise and value to the consumers would determine the success or failure of players in the kitchen industry.
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	85	+== Bath fittings ==
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89		-Bath fittings
	87	+=== Industry overview ===
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91		-Industry overview
92		-
93	93	The bathroom segment in India consists mainly of sanitaryware, Chrome-plated (CP) fittings and tiles. The Company operates in the CP fittings market, which is estimated to be ~~₹ 8,000 Crores, nearly 60% of which is estimated to be serviced by organised players. The industry is marked by several domestic and international brands, thus giving rise to healthy competition. With consumersʼ increasing preference for trusted quality and higher levels of performance requirements, the market share of organised players is expected to increase further.
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95		-Industry trends
	91	+=== Industry trends ===
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97	97	The overall demand is directly proportional with the growth in housing and new construction. There is significant replacement and renovation demand as well, which continues to grow at a healthy rate, irrespective of swings in new housing demand. Growing incomes and aspirations have led to consumers upscaling expenditure on bathrooms. This is expected to increase the share of luxury and premium segments in the total fittings market. Correspondingly, demand for branded fittings is also catching up in smaller towns and cities.
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99		-Outlook
	95	+=== Outlook ===
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101	101	Apart from the surge in aspirational spending in the bath fittings segment, the governmentʼs drive towards improved infrastructure, affordable housing and the Swachh Bharat initiative are expected to be key drivers which will provide a sustainable growth platform for the industry.
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