India Consumer: Paints: Update on Competition

Research evidence excerpt

India Consumer: Paints: Update on Competition

Update

May 14, 2026 09:08 AM GMT

Morgan Stanley India Company Private Limited+MIndia Consumer | Asia Pacific Shravan Vohra

Equity Analyst

Paints: Update on Competition Shravan.Vohra@morganstanley.comArchana Menon, CFA +91 22 6118-2039

Archana.Menon@morganstanley.com +91 22 6118-2215

Key Takeaways Gaurav Varma

Research Associate

We attended JSW Dulux's (not covered) post-4Q conference call and list key Gaurav.Varma@morganstanley.com +91 22 6118-1033

takeaways for the Paints industry below.

India Consumer

Dulux posted strong 23% decorative volume growth in 4Q (vs. 11.8% for Berger). Asia Pacific

Industry View In-Line

Management also indicated 7-10 days of pre-hike channel filling.

The company has guided to double-digit volume growth for F27 and has made

new launches across the portfolio, especially at the mass and economy end.

Dulux targets to reach 6,000 towns by next year and plans to reinvest royalty

savings toward brand initiatives and painter engagement.

Dulux is over indexed to premium, with~40% of revenue from this segment (vs.

22% for the industry); management therefore sees incremental opportunity at

the mass end.

On Pricing: The company was at a 7-9% premium vs. the market and hence cut

prices in 3Q and 4Q to narrow the gap. Following these cuts, and citing raw material

inflation amid Middle East tensions, management indicated a 9.7% price hike as it is

currently seeing 13.5% cost inflation.

On Industry growth, management highlighted that demand has been improving,

while the raw material inflation and INR depreciation remain key variables to

monitor.

Competitive intensity remains high, per management, and it may take until end-

FY27 for market shares across players to stabilize. Management also noted ongoing