### **Overview** Shalimar Paints Limited (SPL), established in **1902**, is **India’s oldest paint manufacturer** and a historically significant player in the country’s paints and coatings industry. With over **120 years of legacy**, the company has supplied protective coatings for major national infrastructure projects, including the **Howrah Bridge, Rashtrapati Bhavan, Chenab River Rail Bridge, nuclear installations, and railways.** The company operates in two core segments: - **Decorative Paints** (residential, commercial, institutional use) - **Industrial Coatings** (protective, marine, OEM, pipeline, and special applications) Headquartered in **Gurugram**, SPL has a **pan-India manufacturing footprint** with production facilities in **Howrah, Nashik, Sikandrabad (UP), and Chennai**. It has undertaken a comprehensive business transformation under its **"Shalimar 2.0" strategy**, aiming to emerge as a **top-five paint manufacturer in India**. --- ### **Key Strategic Developments (Recent Period: Sept 2025)** #### **1. Business Model & Market Expansion** - Implemented a **distributor-led rural expansion model** to strengthen penetration in **Tier 2, Tier 3, and rural markets**, emphasizing **last-mile delivery** and geographically tailored, affordable products. - Expanded dealer network to **48 sales depots** and over **7,300 retail touchpoints** in FY2024-25, with a sharp focus on underserved regions. - Installed **over 250 tinting machines** across retail outlets, enhancing color customization and driving incremental sales in water-based emulsions. #### **2. Product Innovation & Portfolio Diversification** - New product launches accounted for **29% of total sales in FY2023-24**, reflecting strong **commercialization of R&D investments**. - Launched **Mela Series** and **Smart Bharat – Interior+Exterior Paint**, specifically designed for rural and semi-urban consumers with affordable pricing and performance assurance. - Smart Bharat offers a **two-year performance warranty** – a first in the Shalimar portfolio. - Expanded flagship brands: - **Hero Range**: Hero Interior Emulsion (5-year warranty, antiviral, zero VOC) generated **₹55 crore sales in nine months**. - **Zero Damp**: Launched 5-year and 10-year waterproofing solutions, strengthening anti-damp positioning. - Grew **emulsion mix to 35%** of total decorative sales in FY2025 (up from 33% in FY23), signaling consumer shift toward high-performance, eco-friendly products. #### **3. R&D & Sustainability** - The **31,000 sq. ft. R&D center in Nashik** became fully operational in FY2025, serving as a **state-of-the-art innovation hub**. - Focus on **low-VOC, lead-free, and eco-friendly formulations**, aligned with global standards (NSF, WRAS, ISO). - Collaborates with **global vendors, academic institutions**, and certification bodies to maintain high-quality, sustainable coating solutions. - Over **14 new products launched in the past two years**, contributing **over 20% of prior fiscal year revenue**. #### **4. Industrial Coatings Growth & Solutions Leadership** - Transformed from **product supplier to solutions partner**, offering **technical support, application guidance, and NACE-certified inspection services**. - Achieved **double-digit growth in industrial paints**, emerging as the **fourth-largest industrial coatings player in India**. - Key wins: - Supply of **NSF/WRAS-certified solvent-free epoxy coatings** to international projects like **NEOM (Saudi Arabia)** and **Morocco water pipelines**. - Launched **API 5L2 / ISO 15471-certified Gas Flow Epoxy** for oil & gas pipelines. - Secured contracts with **Jindal Steel & Power, Lloyds Metals, Baldota, MSPL, NMDC, Sarda Metals, Shyam Metalics, and Rungta Mines**. - Entered **agricultural, construction equipment, and truck body coating** segments with specialized formulations. #### **5. Marketing & Branding Momentum** - **Enhanced brand visibility** through high-impact national campaigns: - TV advertising during **prime-time news** (festive season) reached **95 million unique viewers weekly**. - **Radio campaigns** across 19 stations in UP & Uttarakhand (300,000+ seconds airtime). - **Wall painting drives** covering **2.8 lakh sq. ft.** on highways in North India using iconic red branding. - **Train and auto branding** for nationwide visual impact. - Participated in **Pragati Maidan trade fair**, showcasing innovations and attracting high footfall. - Launched **digital initiatives**: - **AR-driven Color Visualizer App** for 360-degree home previewing. - Revamped **Painter Loyalty App** in partnership with **Paytm** for instant cashback. #### **6. Digital-First & Painter-Centric Strategy** - **Shalimar Expert Painter Program** has enrolled **over 38,000 painters** in under a year (total base now ~130,000+), with **25% increase in active engagement**. - Program offers **monetary rewards (mobiles, TVs, gold/silver vouchers, cars)** and **technical training**. - Drives brand advocacy and influences consumer/contractor decisions. - Conducts **250+ NAKKA meets per month** (pre-dawn painter engagements) and **Painter Meets** with dealers. - Deployed **mobile training vans**, covering 10,000+ km and training 5,000+ painters in UP. - Active on social media with dedicated handles for brand and painter engagement; grew follower base by 20,000+ in FY24. #### **7. Operations & Manufacturing Modernization** - Investing **₹190 crore** in **"Shalimar 2.0" infrastructure transformation**: - Modernization and automation of **three plants** (Nashik, Sikandrabad, Chennai). - Upgrading R&D center and expanding warehouse network (15 new warehouses). - Implemented **Transport Management System (TMS)** and centralized data platform to optimize **logistics, forecasting, and inventory**, targeting **12% reduction in logistics costs**. - Increased automation supports **premium product lines** like water-based emulsions, waterproofing, OEM, and pipeline coatings. #### **8. Financial Performance & Market Position** - **Revenue surpassed ₹600 crore (gross)** in FY2023-24, with **10% net sales growth** and **market share gains** in both decorative and industrial segments. - Targeting **₹1,000 crore revenue in 2–4 years** with **20–25% YoY growth**. - **Gross margins at 33–34%**, targeting above **35%**, with **EBITDA margin goal of 5–8%** in medium term. - Decorative segment contributes **~70% of industry volume**; SPL's emulsion mix and new product momentum reflect rising brand acceptance. --- ### **Challenges** - **High raw material cost sensitivity** (~65% of total costs), with key inputs linked to **crude oil prices** (resins, solvents). - **Limited pricing power** due to competition from organized players (Asian Paints, Kansai, Berger) and unorganized sector. - Requires compelling **value proposition to attract dealers** in saturated networks (150,000+ dealers nationwide). - **Need to scale product parity** – from 2–3 to 10 variants per category – to compete effectively. --- ### **Governance & Leadership** - **MD: Ashok Kumar Gupta** – 30+ years of leadership experience (SAIL, Jindal, APL Apollo). - **Board includes Abhyuday Jindal (Hella Infra) and Souvik Sengupta**, providing strategic direction toward self-sustainability and profitability. - Strategic investor partnership with **Infra.Market**, bringing **growth capital, tech-enabled distribution, and scalability**. ---