Rupee: New Worry for Paint Cos

Losing sheen Leading decorative paint companies can see further margin contraction due to elevated operating expenses.

- Harsha Jethmalani

The paint industry, long an oligopolistic stronghold with high entry barriers, is undergoing a shift. The entry of new players has intensified competition, leaving established players scrambling to defend their turf.

To retain or expand market share, both incumbents and new entrants are ramping up capacities, expanding dealer networks, and are set to boost advertising spends. But this aggressive push is straining profitability, especially with disruptive pricing from entrants like Birla Opus threatening earnings growth. Companies face a tough choice: prioritize market share or protect margins.