Kamdhenu expects revenue from paints’ segment to reach Rs 1,000 cr by 2021
Kamdhenu, manufacturer of TMT Bars and decorative paints, expects its paints segment to contribute Rs 1,000 crore as revenue in the next three years, said Satish Kumar Agarwal, CEO, Kamdhenu.
In November 2018, the company announced its plan to hive-off the paint division through de-merger into a separate mirror image shareholding company.
“We plan to list the company in 7-8 months. This will help in better growth of both the division with clear management focus,” said Agarwal.
According to Agarwal, the paints industry in India is Rs 35,000-40,000 crore market which is growing at a rate of about 18%, which he plans to capitalise on.
For Kamdhenu, majority of the demand is currently coming from home owners looking to renovate their houses. We expect equal demand from tier-1 and tier-II, III cities in coming years.
Currently, the paint division contributes 14.3% of company’s overall revenue. In Q2 FY19 the revenue from the segment was Rs 55.33 crore. “In 2018, we expect the segment’s revenue to touch Rs 260 crore.”
For this growth to happen, it is betting big on the franchise model similar to the one functional in its steel segment. “We have opened four franchise units in Udaipur, Ghaziabad, Ludhiana and Jammu on trial basis. Depending on the performance we will decide the growth plan,” said Agarwal.
As of now, it has an installed capacity of 46,000 tonnes per annum which it hopes to take to 60,000 tonnes per annum by the end of the next year. It is also looking to install a company-owned plant in south to cater to the needs of the region.