Indigo Paints Ltd

Indigo Paints Limited was originally incorporated as Private Limited Company with the name Indigo Paints Private Limited' at Pune, Maharashtra on March 28, 2000. Subsequently, the Company was converte ... d into a Public Limited Company and consequently, name of the Company was changed to Indigo Paints Limited' on August 20, 2020. The Company is engaged in manufacture and sale of decorative paints. The Company is the fifth largest decorative paint manufacturer and fifth largest paint company in the Indian industry. The Company's product offering encompasses Emulsions, Enamels, Wood Coatings, Distemper, Primers, Putties and Cement Paints. It has an active dealership network of 15,787 and presently has 4 manufacturing units, spread across 28 states. It is presently installing tinting machines across its network of dealers. To create demand for its differentiated products, the company initially tapped into Tier 3, Tier 4 cities, and rural areas, where brand penetration is easier and dealers have greater ability to influence customer purchase decisions. It has introduced tinting machines in target markets to increase sales of emulsion paints, which require in-shop tinting. The Company manufactures a complete range of decorative paints including emulsions, enamels, wood coatings, distempers, primers, putties and cement paints. It also identify potential product needs from customers and introduce differentiated products to meet these requirements, and create a distinct market for its products. For instance, the company is the first company to manufacture and introduce certain differentiated products in the decorative paint market in India, which includes its Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions, Floor Coat Emulsions, Dirtproof & Waterproof Exterior Laminate, Exterior and Interior Acrylic Laminate, and PU Super Gloss Enamel (together, 'Indigo Differentiated Products'). These products are differentiated based on the end-use they cater to, as well as added properties that they possess. As the first company in India to develop these products, the company has had an early mover advantage in the markets it is present in, which has allowed it to realize relatively higher margins for these products compared to the rest of its product portfolio. During year 2021, 8 new depots were opened in different parts of the country and over 2,000 net active dealers were added to strengthen product reach. It also added over 1,100 tinting machines, a special equipment to mix and match colours and produce the consumer's desired shade, across the dealer stores. In FY'21, the Company doubled the production capacity for powder paints such as putties, with the expansion of its existing plant in Jodhpur in FY21. As of March 31, 2021, Indigo had installed 5,472 tinting machines across India. It raised Rs. 1,170 Crore through maiden public issue which got listed on February 2, 2021 on the Stock Exchange. As on March 31, 2022, the Company had 7,101 tinting machines in its dealer network, with a Tinting Machine penetration ration of 43%. It had raised Rs. 1,170 Crore through IPO during FY 2020-21. Out of the proceeds, Company received Rs. 28,711.21 lakh for funding capital expenditure for expansion of existing manufacturing facility at Pudukkottai, Tamil Nadu by setting up an additional unit adjacent to the existing facility; purchase of tinting machines and gyroshakers and repayment of part borrowings. During the year 2021-22, the Company has increased number of active dealers to 15,787. Additionally, it also increased the population of tinting machines to 7,101 in FY 2022. It opened an additional depot in Karnataka and opened a depot each in Delhi & Himachal Pradesh. As of March 31, 2022, the Company owns and operates three manufacturing facilities located in Jodhpur (Rajasthan), Kochi (Kerala) and Pudukkottai (Tamil Nadu) with an aggregate estimated installed production capacity of 1,10,700 kilo litres per annum (KLPA) for liquid paints and 1,38,000 metric tonnes per annum (MTPA) for putties and powder paints. Its manufacturing facilities are located in close proximity to raw material sources that reduces inward freight costs, lowering its cost of raw materials. The Company expands manufacturing capacities at Pudukkottai plant in Tamil Nadu, by adding capacities to manufacture water-based paints to cater to the growing demand for these paints. The upcoming plant in Tamil Nadu will have an estimated installed capacity of ~ 50,000 KLPA, which will be operational during Fiscal 2023. Read More