Exclusive: In chat with Anil Singhvi, Indigo Paints CMD Hemant Jalan speaks about expansion plan, business outlook
In todays episode of News Par Views show, Zee Business Managing Editor Anil Singhvi spoke to Hemant Jalan, Chairman and Managing Director (CMD) of Indigo Paints where the latter speaks about companys expansion plans and business outlook
In today’s episode of ‘News Par Views’ show, Zee Business Managing Editor Anil Singhvi spoke to Hemant Jalan, Chairman and Managing Director (CMD) of Indigo Paints where the latter speaks about company’s expansion plans and business outlook.
The company which started operations in March 2020 is into decorative paint business. It is India’s fifth largest paints company with plants in Rajasthan, Kerala and Tamil Nadu.
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Jalan said that the Indigo Paints has raised Rs 300 cr through primary issue of shares in the recently concluded Initial Public Offering (IPO). Out of this Rs 150 cr is going towards expansion. The company will be taking an expansion plan on its plant near Trichi in Tamil Nadu. The plant which is located in the Pudukkottai district is a water-based paint manufacturing plant, the CMD said.
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He also informed that Indigo Paints is debt free now. The company has kept aside Rs 60-65 cr for general corporate purposes.
On Company and earnings outlook
Jalan said that the expansion plan and earnings of Indigo Paints will go hand-in-hand. He said that the paint business is seasonal. The current expansion is with the view of the potential stress that the company could see in supply in Southern India because of the growing demand. The expansion is likely to get completed and the unit will be commissioned by June 2022. This will make Indigo Paints comfortable for years to come, he further said.
He said that the growth in company will be very good as the base is low in comparison to big companies like Berger and Asian Paints, he added.
He said that the entry barriers in this sector are huge and only 4 big companies have been there in the sector for the last 50 years. Indigo Paints has been able to break that barrier to some extent, he said.
Though in terms of turnover, Indigo Paints is fifth largest paints company in India, it is at fourth in terms of market capitalisation, the CMD said.
He said that it is an attractive segment.
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