JSW Paints vs Asian Paints: Which Is The Indians Paint Leader?

The battle of JSW Paints vs Asian Paints has become a new headline of our paint industry. The Indian paint industry is flourishing with the arrival of new players. We all are aware of the dominant position enjoyed by titans like Asian Paints, Nerolac Paints, etc.

Wait a minute!

Isn’t JSW Paints a new player in the industry? Not just that, folks are now wondering whether it can beat Asian Paints or not! This scenario is similar to a toddler competing as an adult in a sprint race.

Let me tell you an interesting fact here. JSW Paints isn’t a startup. Rather it is a subsidiary of the conglomerate JSW Group.

Now that makes the battle of JSW Paints vs Asian Paints interesting. In this write-up we will go through a detailed comparison analysis of JSW Paints vs Asian Paints. Finally, we will determine who is the winner.

Stay tuned!

JSW Paints vs Asian Paints: A Brief Overview

First of all, let’s compare the profiles of JSW Paints vs Asian Paints. You must note the fact that JSW Paints is a subsidiary of JSW Group. Therefore, we will compare Asian Paints with JSW Group first, then in the upcoming sections we will dive into details.

Here is the brief overview of them-

In the upcoming sections, we will delve into the detailed analysis of JSW Paints vs Asian Paints.

JSW Paints

JSW Paints is a paint manufacturer company in India that offers a wide range of exterior and interior wall paint colors, as well as decorative painting solutions for homes. The company aims to create thoughtful and beautiful experiences for its customers

JSW Paints Private Limited, established on February 25, 2016, is an Indian private company falling under the category of a ‘company limited by shares.’ 

With an authorized capital of Rs 1.0 lakhs and a fully paid-up capital of Rs 1.0 lakhs, the company operates in the Manufacturing sector, specifically in Metals & Chemicals and related products, for the past seven years. 

Currently active, JSW Paints Private Limited is registered at the Mumbai (Maharashtra) Registrar Office, with its official address located at Jindal Mansion, 5A, Dr. G. Deshmukh Marg, Mumbai, Maharashtra, INDIA 400026.

Asian Paints

Asian Paints Ltd, a multinational paint enterprise based in Mumbai, Maharashtra, India, stands as a dynamic player in the creation, sale, and distribution of paints, coatings, and diverse products associated with home décor and bath fittings. 

Additionally, the company provides related services to enhance customer experiences. Claiming the title of India’s largest paints company in terms of market share, Asian Paints takes the lead in the vibrant world of colors. 

Serving as the holding company for Berger International, its manufacturing footprint extends across 15 countries globally, including a substantial presence in the Indian subcontinent and the Middle East. 

Asian Paints is not merely a paint manufacturer; it is a creative force shaping living spaces and experiences worldwide.

Business Analysis of JSW Paints vs Asian Paints

When comparing JSW Paints and Asian Paints, it’s important to note that Asian Paints is the industry leader, having been established for a longer period of time, while JSW Paints is a relative newcomer in the market.

Each brand offers a range of products, and the choice between the two may depend on specific project requirements and desired outcomes. In terms of market dynamics, there have been reports about competition between the two companies, but the Competition Commission of India (CCI) did not find any violation of competition law by Asian Paints, the market leader.

This suggests that while both are significant players in the Indian paint industry, Asian Paints maintains a dominant position.

Let’s see how these paint companies are performing in the market in terms of various aspects-

Analyzing the performance of JSW Paints and Asian Paints across various business aspects reveals distinct differences. In terms of market value, JSW Paints is part of a conglomerate with a market cap of Rs.2.14 trillion, while Asian Paints boasts a larger market cap of Rs.3.12 trillion. 

The market share reflects a notable contrast, with JSW Paints holding 2%, and Asian Paints dominating with a substantial 40%. Looking at revenue, JSW Paints reported Rs.1,500 crore, a fraction of Asian Paints’ formidable Rs.34,875 crore. While JSW Paints’ operating income exceeds Rs.500 crore, Asian Paints leads with Rs.5,594 crore. 

In terms of profits, JSW Paints secured Rs.1,000 crore, whereas Asian Paints outshone with Rs.5,489.60 crore. Asian Paints’ net income stands at Rs.4,101 crore, while JSW Paints’ net income is not available. The total assets of Asian Paints amount to Rs.25,798 crore, with JSW Paints’ figure not specified.

In conclusion, Asian Paints emerges as the clear winner in terms of business performance, dominating across market share, revenue, operating income, profit, net income, and total assets.

While JSW Paints shows promise, particularly with a substantial market cap as part of a conglomerate, Asian Paints’ established presence and robust financial metrics position it as the frontrunner in the competitive paint industry.

Future plans of JSW Paints

JSW Paints envisions a robust future, aiming to double its FY23 revenue to Rs 2,000 crore within the first year of nationwide operations under JSW Group. 

The CEO, AS Sundaresan, anticipates this surge to drive profitability in decorative paints, complementing the already profitable industrial coatings segment. Eyeing expansion, the company contemplates a third greenfield facility, potentially in Uttar Pradesh, Madhya Pradesh, Haryana, or Maharashtra. 

Plans include doubling retail touchpoints to 10,000 in 2-3 years, targeting 5% of the competitive decorative paints industry. Despite intense competition, JSW Paints, having invested Rs 800 crore, sees ample room for market rivalry, contrasting Grasim’s entry with a substantial Rs 10,000 crore investment. 

Sundaresan highlights industry asymmetry, emphasizing potential for healthy competition. 

Meanwhile, JSW Steel completes a strategic Rs 750 crore investment, securing a 12.84% stake in JSW Paints, fortifying the partnership’s technological innovation. We will discuss it in next section.

Note: When it comes to paints, some of the most anticipated comparisons are-

• Nerolac vs Asian Paints
• Asian Paints vs Berger Paints

Go through the articles for detailed information.

Expansion Plans: JSW Steel’s Strategic investment in JSW Paints

JSW Steel has successfully concluded its strategic investment of ₹750 crore in JSW Paints, as announced on Thursday. The investment, initially outlined in July 2021, was executed in 3-4 installments over the past three years, with the final tranche of ₹75 crore completed on November 22, 2023. 

In its stock filing, JSW Steel revealed holding 2,94,82,565 equity shares in JSW Paints, constituting 12.84% of the issued and paid-up equity capital (11.85% on a fully diluted basis). The steel company’s shares closed slightly higher at ₹775.55 on BSE. 

This disclosure aligns with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements. The collaboration aims to leverage Jindal Paints’ technology and innovation for mutual benefit, enhancing JSW Steel’s consumer brands.

JSW Paints vs Asian Paints: Legal Battle

In the legal dispute between JSW Paints and Asian Paints, the competition watchdog cleared Asian Paints, India’s most valued paints company, of allegations involving  anticompetitive trade practices.

The Competition Commission of India (CCI), in its September 8 report, investigated claims against the decorative paints market leader and determined that Asian Paints’ actions were grounded in objective criteria and a uniformly applicable practice to safeguard its business interests.

JSW Paints, a unit of the JSW Group, entered the decorative paints market, where Asian Paints commands a 40% share. The 2020 allegation contended that Asian Paints, leveraging its dominant market position, obstructed JSW Paints’ entry into Karnataka, Telangana, and Tamil Nadu.

The complaint highlighted instances of Asian Paints reducing credit limits and tiers of dealers in these states, allegedly pressuring them to discard or downplay JSW Paints’ promotional material.

The CCI’s investigation found that reductions in credit limits were based on business considerations, such as reduced off-take or unpaid accumulated dues, aligning with Asian Paints’ established policy. The report clarified that the restoration of retail tiers occurred before the case filing, and Asian Paints did not exert pressure on dealers to remove JSW promotional material or tinting machines.

Additionally, a dealer’s coercion claim, submitted in a letter and later dismissed in an affidavit, was obtained by JSW Paints without providing the true context.

JSW Paints: Excellent Financial Performance

In the fiscal year 2022-23, the company achieved revenues exceeding Rs 1,500 crore. Presently, 55 percent of these revenues stem from decorative paints, while industrial paints contribute 45 percent. There’s a noticeable shift towards a 60-40 split, with the decorative business doubling in the mentioned fiscal year, and an ambitious goal to replicate this growth annually. 

JSW Paints plans to expand its decorative segment capacity from 100 million to 160 million litres, investing Rs 60-80 crore in brownfield expansion. In the industrial segment, with a current capacity of 50 million litres, the company has diversified from coil coatings to undertaking comprehensive paint projects for large industrial complexes. 

Emphasizing end-to-end services, JSW Paints reaches 6,000 retailers nationwide, securing a 3.5 percent market share. With aspirations to gain over 1 percent market share each year, the company aims for a 5 percent share by 2025, upholding its distinctive selling proposition of ‘Any Colour, One Price.’

Final Thoughts on JSW Paints vs Asian Paints

In the vibrant canvas of the Indian paints industry, the comparison between JSW Paints and Asian Paints unveils a clear narrative. While JSW Paints demonstrates promise with the notable market cap of its parent company and growth aspirations, Asian Paints stands tall as the undisputed leader.

Boasting a colossal market share, staggering revenue, and robust financial metrics, Asian Paints paints a picture of dominance. 

The intricacies of market value, operating income, and net income solidify Asian Paints’ leadership. JSW Paints, a budding contender, showcases potential, yet the current landscape crowns Asian Paints as the quintessential Indian paints leader, casting a shadow that vividly colors the competitive landscape.