DENTING THE DOMINATING PAINT INDUSTRY: KAMDHENU VENTURES LIMITED EYES RS. 1000 CRORE REVENUE BY FY28
Kamdhenu Paints boasts a nationwide presence, with an in-house production capacity of 36,000 KLPA and outsourced capacity reaching 50,000 KLPA
THE Oligopolistic Paint Industry in India has dominated the space since Independence. Three four Entrenched players have been ruling the Organised side throughout the years. But the tables have turned from last few years with major business conglomerate venturing into this astonishing and ever-growing sector. Anticipating the potential of India's growing economy, Delhi-based Kamdhenu Group, known for its prominence in steel and TMT bars, diversified in 2008. Establishing a dedicated paint manufacturing facility, the vision was to emerge as a leading paint company. Presently, Kamdhenu Paints boasts a nationwide presence, with an inhouse production capacity of 36,000 KLPA and outsourced capacity reaching 50,000 KLPA.
With a focus on quality and innovation, the company ensures customer satisfaction with every product. Through modern automation processes and advanced research & development, Kamdhenu Paints emphasizes premiumization, delivering products that meet the highest quality standards.with a robust presence of 4,000 dealers and distributors across the country, Kamdhenu Paints has firmly established itself in the market. The product range of Kamdhenu Paints offers a wide range of premium decorative paint products, Acrylic Distempers, Water Based & Solvent Primers, Synthetic & GP Enamel, Wood Finishes, Aluminium Paints, and Textured to Designer Finishes catering to both interior and exterior needs.
The company initially prioritized affordable variants to build trust with dealers and painters. Now, having solidified relationships, it strategically shifted towards premium offerings, achieving a 43% share in the premium product segment.
In Q3 FY24, the company posted robust results with a 14% revenue increase to Rs. 79.1 crore, EBITDA at Rs. 6.2 crore, and a net profit of Rs. 4.1 crore, reversing last year's net loss. For 9 months ending Dec 2023, it achieved a 9% revenue rise to Rs. 206.6 crore, EBITDA of Rs. 15.1 crore, and a net profit of Rs. 9.7 crore. Average Selling Price per KG/LTR for 9M FY24 stood at Rs. 89, which has been a significant increase compared to past year.
The company gets listed on both the bourse NSE and BSE in 2021 as a demerged entity following the scheme of arrangement with its group company Kamdhenu Limited. Since then, the company has maintained exceptional track record when it comes to creating value for shareholders. Company in its short-listing history has rewarded its shareholders by
the way of bonus shares in ratio of 1:1. The share have garnered decent 180.64% returns over the period of last one year.
The company's strategic emphasis on product premiumization has yielded positive results, evident in its positive EBITDA of Rs.15 crores, a stark improvement from the previous year's negative figure. Substantial investments in brand image, celebrity endorsements, and dealer commissions underscore its commitment to expanding market share. Focused on enhancing product portfolio premiumization and capitalizing on growing demand, the company anticipates sustained growth and profitability, presenting attractive prospects for investors through innovation and customer-centric strategies.
As one of the founding members of Kamdhenu Ventures Limited, Sunil Kumar Agarwal proudly said that, “In recent years, we’ve transformed from just another company to one of the best. Our steady growth journey highlights our exceptional achievements, in FY-2021, our revenue reached around Rs. 200 crore leading us to the strong market leadership position we hold today. Explore our franchisee business model and revolutionary Stockyard Model for decentralized stock management. Our vision is to lead the paint industry by FY28 reaching around Rs. 1,000 crore in revenue by adhering to global best practices and our founding philosophy.”