Mark to Market

  Quality of Business Asian Paints has the highest profit margins when compared to its peers. It is working at 20% net profit as of March21 as compared to 14% of Berger Paints. The contribution to the profit pool is 4 times the Berger paints and 2 times of the top 5 listed companies in this industry. Return on investment is 24% of Asian paints as compared to 21% of Berger paints. Revenue has been growing at a CAGR of 8.9% as compared to 9.5% for Berger paints and Operating margin at 20% as compared to 16.5% for Berger paints in the past 3 years. Asian Paints having a COGS of 78% with decreasing trend every year of 1% as compared to 83% of Berger paints with average being maintained at 83%, no doubt is going to increase profit at the same pace. Along with this, international business is 4 times that of Berger paints contributing 11% to total sales as compared to 7% for Berger paints. On the other hand, Berger paints have 20% sales coming from Industrial Coatings while Asian paints have

Global   The global market volume of paint and coatings amounted to nearly ten billion gallons in 2019. In 2020, the global paint and coatings industry was estimated to be valued at  some 158 billion dollars . USA The U.S. paints and coatings market size was valued at USD 24.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2020 to 2027 The architectural and decorative segment led the market and accounted for more than 57.0% share of the overall revenue in 2019. Rising infrastructure spending in the U.S. is expected to potentially fuel the growth of the construction industry over the forecast period.  The acrylic segment led the market and accounted for more than 42.0% share of the overall revenue in 2019. This is attributed to its high demand from infrastructure, automotive, paints and varnishes, and paints and metal coating applications. China Since 2013, Chinese total paint production has accounted for more than one-third of the world