Sri Lankan Expansion

Kansai Nerolac Paints , one of India's leading paint manufacturers, has announced a significant expansion move into the Sri Lankan market while reporting its first-quarter financial results. The company's Board of Directors has approved an investment of LKR 300 million (approximately Rs 9.00 crore) in Kansai Paints Lanka (Private) Limited, its Sri Lankan subsidiary. This strategic move represents Kansai Nerolac's commitment to expanding its footprint in the South Asian market and capitalizing on growth opportunities in Sri Lanka.

Q1 Financial Performance

For the quarter ended June 30, Kansai Nerolac Paints reported:

• Net revenue of Rs 2,087.42 crore, a modest growth of 1.8% compared to the same quarter last year
• EBITDA of Rs 311.97 crore, down 6.7% year-on-year
• Profit Before Tax (PBT) of Rs 310.08 crore, a 4.1% decrease from the previous year

Market Dynamics and Performance

Pravin Chaudhari, Managing Director of Kansai Nerolac Paints, commented on the quarter's performance: "During the quarter, demand for Decorative showed signs of revival, though an early monsoon impacted during the later part of the quarter. KNP decorative performance was affected due to the disturbance in April which impacted key markets in the North."

He added, "In Automotive, demand for KNP continued to be better than the market, on the back of various initiatives. Performance coatings registered strong growth. Raw material prices were benign. Forex remained volatile."

Outlook

Looking ahead, the company anticipates an improvement in decorative demand, driven by a favorable monsoon and the early onset of Diwali. In the industrial segment, Kansai Nerolac expects its market-leading growth trajectory to continue.

The size of the domestic paint industry in India is estimated at around Rs 77,500 crore as of March 2025. The company believes that good growth in infrastructure, core sector, automobile, and real estate is likely to have a positive effect on the overall demand for paint in the long run.

As Kansai Nerolac Paints enters its 105th year, it continues to be at the forefront of paint manufacturing, with nine strategically located manufacturing units across India and a strong dealer network. The company's expansion into Sri Lanka underscores its commitment to growth and market leadership in the region.

Kansai Nerolac Paints Limited , one of India's leading paint manufacturers, has announced its financial results for the quarter, revealing a modest growth in revenue despite challenging market conditions.

Financial Performance

The company reported a net revenue of Rs 2,087.42 crore for the quarter, marking a 1.8% increase compared to the same period last year. However, profitability metrics showed a slight decline:

Market Dynamics and Segment Performance

Kansai Nerolac experienced mixed results across its various segments:

• Decorative Segment: Showed signs of revival but was impacted by an early monsoon, particularly affecting key markets in the North.
• Automotive Segment: Demand for Kansai Nerolac products continued to outperform the market, supported by various initiatives.
• Performance Coatings: Registered strong growth.

Operational Highlights

• Raw material prices remained benign during the quarter.
• Forex volatility continued to be a factor affecting the company's operations.

Management Commentary

Mr. Pravin Chaudhari, Managing Director of Kansai Nerolac Paints Ltd, commented on the results: "During the quarter, demand for Decorative showed signs of revival though an early monsoon impacted during the later part of the quarter. KNP decorative performance was affected due to the disturbance in April which impacted key markets in the North. In Automotive, demand for KNP continued to be better than the market, on the back of various initiatives."

Future Outlook

Looking ahead, the company anticipates:

1. Improvement in decorative demand driven by a favorable monsoon and the early onset of Diwali.
2. Continued market-leading growth trajectory in the industrial segment.

Industry Perspective

The domestic paint industry is estimated to be valued at around Rs 77,500 crore. Positive growth in infrastructure, core sectors, automobile, and real estate is expected to have a favorable impact on the overall demand for paint in the long run.

About Kansai Nerolac Paints Ltd

Now in its 105th year, Kansai Nerolac Paints has established itself as a pioneer in paint manufacturing, offering a wide spectrum of quality paints. The company is a leader in industrial paints and operates nine strategically located manufacturing units across India, supported by a strong dealer network. Its product range spans from decorative paints for homes and commercial spaces to sophisticated industrial coatings.

As the paint industry continues to evolve, Kansai Nerolac remains committed to innovation and quality, positioning itself to capitalize on the growing demand in both decorative and industrial segments.