Zydex Targets ₹300 Cr Revenue In Paints

Gujarat-based Zydex Group is targeting a three-fold jump in revenue from its paints and waterproofing business to ₹300 crore within the next two years. The company, which clocked around ₹90 crore in paints and waterproofing revenue last fiscal, expects this to rise to about ₹150 crore in the current financial year.

The company's Managing Director, Moulik Ranka, said that Zydex is banking on silicate mineral paints for its revenue growth target. Unlike mainstream acrylic paints, silicate mineral paints offer a new category with potential for growth. Ranka expects the segment to grow 25-50 per cent annually over the next 10-15 years.

Zydex, as a group, operates four divisions with a revenue of approximately ₹550 crore. The company entered the paints business a couple of years ago and is now focusing on silicate mineral paints. The company expects its niche paints category to eventually corner around 2 per cent of the overall Indian paints market, which is pegged at roughly ₹80,000-1,00,000 crore.

The Indian paints market is a significant sector, with a potential opportunity of ₹1,500-2,000 crore over the medium to long term. Zydex is aiming to build a meaningful presence in the premium paints segment in the medium to long term. The company has invested around ₹50 crore in its Vadodara-based plant for silicate mineral paints.

Ranka said that silicate mineral paints currently cost about three times as much as conventional acrylic paints, but the price gap is expected to shrink over the coming years as production scales up and manufacturing costs decline. Unlike mainstream acrylic paint players sold through B2C retail channels, Zydex is operating through the specification route, working directly with architects.

The company's COO, Amrendra Mishra, said that Zydex is building a database of around 80 top-tier architects annually for its premium range, while onboarding 150-200 additional architects every month across other categories for its organosilicate paint line. Ranka also said that the company intends to invest aggressively in brand-building as it expands into retail channels, with marketing expenditure likely to account for 15-20 per cent of revenue in the short to medium term.

Zydex has put in about ₹50 crore to set up its manufacturing facility in Vadodara, which now sources over 95 per cent of its raw materials domestically. The company has also announced a strategic partnership with realty firm M3M India to deploy KEIM Regalan, a silicate mineral paint.

The partnership with M3M India is a significant step for Zydex, as it looks to expand its presence in the Indian paints market. With its focus on silicate mineral paints, Zydex is well-positioned to capitalize on the growing demand for premium and durable paints in the country.

In terms of significance, Zydex's target of tripling its revenue in paints to ₹300 crore is a notable development in the Indian paints sector. The company's focus on silicate mineral paints offers a new category with potential for growth, and its partnership with M3M India is a significant step in expanding its presence in the market. As the Indian paints market continues to grow, Zydex is well-positioned to capitalize on this trend and establish itself as a major player in the sector.

The growth of the Indian paints sector is driven by increasing demand for premium and durable paints, particularly in the construction and infrastructure sectors. As the country's economy continues to grow, the demand for paints is expected to increase, driven by government initiatives such as the Smart Cities Mission and the Pradhan Mantri Awas Yojana.

In conclusion, Zydex's target of tripling its revenue in paints to ₹300 crore is a significant development in the Indian paints sector. The company's focus on silicate mineral paints offers a new category with potential for growth, and its partnership with M3M India is a significant step in expanding its presence in the market. As the Indian paints market continues to grow, Zydex is well-positioned to capitalize on this trend and establish itself as a major player in the sector.

The company's aggressive investment in brand-building and its expansion into retail channels are also significant steps in establishing itself as a major player in the Indian paints sector. With its focus on silicate mineral paints and its partnership with M3M India, Zydex is well-positioned to capitalize on the growing demand for premium and durable paints in the country.

Overall, Zydex's target of tripling its revenue in paints to ₹300 crore is a notable development in the Indian paints sector, and the company is well-positioned to capitalize on the growing demand for premium and durable paints in the country.