A legacy of performance and excellence
Dear Shareholders,
I feei very privileged to put forth my first communication to all of
you, as the Chairman of the Board of Directors of this widely admired organisation. I took
over this responsibility from my esteemed predecessor, Mr. Deepak Satwalekar, who had been
an integral part of our Board over the last two decades and had stepped into the role of
Chairman during FY 2021-22.
I take this opportunity to express, on behalf of the Board, my deep
gratitude to Mr. Satwalekar for the invaluable guidance and wise advice that he had
provided to the organisation over the years.
I have always known Asian Paints as a pioneering leader in the industry
and over the years, I have come to greatly respect and admire the Company, its values, its
people and their capabilities. The Asian Paints Charter and the values embedded in it
remain the founding stone of our organisation, seamlessly driving the actions and
behaviours of all our employees, led by an effective management team.
Consistent Performance
Against a very dynamic business environment clouded by unprecedented
inflation and geopolitical tensions, our Company has delivered a solid performance
relentlessly pursuing innovation to bring out products and services to provide newer and
enhanced value propositions for all its consumers. Our foray in the home decor space has
taken a guantum leap over the past few years catapulting us into the position of being the
leading integrated home decor player.
Our Industrial business has grown exponentially over the past few
years, and we have been able to expand our reach and capabilities backed by a sturdy
technology base which has enabled us to gain significantly in the market.
FY 2023-24 saw consumption demand moderating on the back of the
lingering impact of retail inflation, particularly in the rural markets. This led to the
revenue growth trajectory tapering down to single digits for the FY 2023- 24. Despite this
subdued revenue growth, we delivered strong profit growth supported by the correcting raw
material prices as well as various internal cost optimisation initiatives. On a
medium-term basis, we have maintained our double-digit revenue growth trajectory
delivering mid- teen compounded growth rates.
Our Long-term Commitment to ESG
ESC has consistently been at the core of all our business objectives
and operations. We firmly believe that a persistent focus on ESC is fundamental for
long-term success and resilient value creation. We consider supporting our local
communities, respecting our environment and sharing the collective fruits of our work as
imperatives for our social licence to operate. I encourage you to read our Integrated
Annual Report and the Business Responsibility and Sustainability Report to gain a
comprehensive understanding of the progress we have made on our ESC commitments.
Board Leadership
Our Company is founded on the highest standards of governance,
integrity, ethics and transparency. These attributes have been sustained and reinforced
over the years through the calibre of our Board.
During the year, Mr. Ashwin Dani,
Non - Executive Promoter Director, departed for his heavenly abode.
He had been associated with the Companysince 1968 and had been a strong
force in heralding the Company to technological excellence. He joined the Board in the
year 1970 and contributed in various capacities through his long association. Under his
visionary leadership, Asian Paints expanded its operations across the globe, solidifying
its place as one of the world's leading paint companies.
For the period between 2018 to 2021, he held the position of Chairman
of the Board. He was notjust a business leader but a pioneerand philanthropist who left an
indelible mark on both the paint industry and society as a whole. I place on record our
profound appreciation for his valuable contribution.
As mentioned earlier, Mr. Deepak Satwalekar, Independent Director and
Chairman, retired from the Board on 30th September 2023.
Also, during the year, we had three Independent directors completing
their tenure on our Board. Ms. Vibha Paul Rishi, chairing both the Stakeholders
Relationship Committee and the Risk Management Committee as well as member of the Audit
Committee and Corporate Social Responsibility Committee ceased to be Director upon
completion of her tenure.
Ms. Pallavi Shroff, member of both theAuditand Risk Management
Committee, completed her tenure as Director. Mr. Suresh Narayanan, chairman of the
Nomination and Remuneration Committee, and member of the Investment Committee completed
his tenure as well. I would like to thank all of them for their immensely valuable
contribution and guidance to our Board and the Company.
Furthermore, I am delighted to welcome Ms. Ireena Vittal,
Mr. Soumitra Bhattacharya and Dr. Copichand Katragadda as Independent
Directors to the Board. Their extensive experience will significantly add value to our
company and enhance our capacity to grow and develop our business.
Moving Forward
Good results are the product of an effective management team and a
professional and committed workforce. The energy and talent of all our 12,000+ employees
across geographies truly came to the fore during the year. I would like to express my deep
gratitude to our people and their families. It is clear to me that we have, within the
organisation, profound commercial acumen, proven capabilities and a tremendous culture of
fostering leaders.
I believe there is not a more exciting economy in the world than our
own here in India. Itis a nation brimming with opportunity and enterprise looking to
modernise, expand and accommodate the rising aspirations of its growing population. We are
well-positioned to capitalise on this exponential growth opportunity. Our focused growth
strategy and hunger
"ESG has consistently been at the core of all our business
objectives and operations. We firmly believe that a persistent focus on ESG is fundamental
for long-term success and resilient value creation".
for cutting edge technology and innovation will lead the way forward.
The widening competitive landscape has given us an added impetus to excel, further
strengthening our growth ambitions. This increasing competitive interest also highlights
the strong growth potential of the industry, benefitting our consumers with numerous
choices and inspiring all players to put their best foot forward.
We are all here, as an organisation, to deliver value to our customers,
our shareholders, our employees and all stakeholders. Over the past few decades, our
Company has created tremendous value for all, and I remain confident that we will continue
to do so in the future as well. I look forward to your continued support in this pursuit.
Warm reaards, &\