FUELLED BY PURPOSE, POWERED BY CONFIDENCE
Dear Shareholders,
It is a privilege to address you once again this year, as the Chairman
of the Board of Directors of this esteemed organisation. In a year when my engagement with
the Company increased, I have come to admire even more the organisation's strong
legacy, its undiminished potential for continued leadership of the industry as well as the
unfailing support of our stakeholders.
I have also witnessed the resolute alignment of all stakeholders with
the Asian Paints Charter, an embodiment of our purpose and values. The values represented
in the Charter are not just referenced but lived, day in and day out, by each and every
member of the Asian Paints family. They shape how we think, how we operate and how we
engage with all our stakeholders.
A Year of challenges
The global landscape continued to be volatile, strained with rising
voices for higher protectionism and continuing geopolitical conflicts. On the
macroeconomic front, the year started with a strong tailwind of expected policy rate cuts
across major economies to unwind from the steep rate hike cycle that was warranted by
spiralling inflation in the previous couple of years. The actual policy easing, however,
has been shallower with rising prospects of global trade war muddling the outlook and this
has played out adversely on consumption. Even in India, while the overall economic
activity kept pace, the coatings and the larger home d?cor sector witnessed tepid demand
conditions as subdued sentiments weighed down on consumption, contributing to the revenue
decline for our consolidated business for the year.
Despite these headwinds, the competitive landscape intensified, with
both new entrants and established players adopting more aggressive, often short-term
strategies.
There have been many learnings from these challenges and the changed
environment. I am glad that the Company has utilised these learnings to further sharpen
the competitive skills and competences in order to forge ahead with renewed vigour and
purpose.
As a leading paint Company, we responded with a balanced and strategic
approach, prioritising long-term, sustainable value creation for all stakeholders. In this
context, we enhanced our focus on value-driven offerings. Our Neo Bharat
range—featuring advanced polymer technology—and the Sparc portfolio under the
Tractor and Ace brands, provided compelling choices for value conscious consumers.
Simultaneously, we continued to elevate our premium and luxury segments with standout
products like Royale Glitz and Nilaya Arc, delivering exceptional features and
experiences.
Our vast and expanding dealer network and the dedicated applicator
community remain vital pillars of strength for our leadership and we have reinvigorated
our efforts to engage and deliver value to these stakeholders through increased
investments in training, retailing enhancements and assisting lead generation. Our vision
and intent to transition to an integrated home d?cor player, being a preferred choice in
our customers ‘home d?cor journey' to create their ‘Beautiful Home',
remains relevant and valid. Despite adverse business performance, impacted by softer
discretionary spends and other challenges, we believe that being an integrated home d?cor
player, is a strong differentiator, adding to our unique brand value. Our Beautiful Homes
Stores network is now a 72-store-strong network allowing our customers to experience all
our products and services under one roof with cutting-edge visualisation tools and
customisation opportunities.
ESG woven into the business
Our commitment to Environmental,
Social and Governance (ESG) principles continues to be a cornerstone of
our strategic direction. Whether through our water stewardship programmes, sustainable
operational practices, or initiatives that promote inclusive growth, we are proud of the
tangible and far-reaching progress we have made. Guided by our ESG Charter, we have
established clear, measurable targets across each of our strategic focus areas. Over the
years, we have consistently advanced toward these goals. In FY 2024–25, we undertook
a comprehensive assessment of our performance against our 2025 targets. Building on this
momentum, the Board is now actively steering its efforts towards achieving our long-term
ESG ambitions set for 2030. Our journey is one of continuous improvement, and we remain
steadfast in our resolve to create long-term value for all stakeholders while contributing
meaningfully to a more sustainable and equitable future.
In FY 2024–25, we undertook a comprehensive assessment of our
performance against our 2025 targets. Building on this momentum, the Board is now actively
steering its efforts towards achieving our long-term ESG ambitions set for 2030.
Board membership changes
During the year, Mr. Jigish Choksi stepped down from his role as a
Non-Executive Director to pursue his family business and other personal interests. We
express our sincere gratitude to him for his valuable contributions and dedicated service
to the Board.
We were also pleased to welcome Mr. Varun Berry as an Independent
Director and Mr. Ashish Choksi as an Additional and Non-Executive Director on the Board.
Their extensive industry experience and strategic insights will significantly enhance the
Board's collective expertise and governance capabilities as we continue to steer the
Company toward long-term growth and value creation.
Looking ahead
Our enduring priority remains to create meaningful value for all
stakeholders - consistently, responsibly, and with foresight. At the heart of this pursuit
is our people. We are deeply appreciative of our teams whose agility, leadership and depth
of expertise have shaped a culture that is both high-performing and deeply human. Our
sincere thanks are also due to their families for their support.
India is on an exciting journey of growth and transformation.
With rising aspirations, bold policy reforms, and decisive
implementation, the nation is poised to become the world's third-largest economy.
This trajectory presents immense opportunities for those ready to evolve, innovate, and
adapt. As a leading paint company, our strong brand salience positions us well to harness
these opportunities. We remain focused on further strengthening this brand equity, which
we believe is a key lever for sustainable growth and long-term progress. The evolving
competitive landscape calls for pace, imagination and purpose. The resilience and
forward-looking mindset of team Asian Paints, gives me great confidence that we will
continue to strengthen our leadership as we look ahead.
I look forward to your continued support as we move ahead on this
journey of growth, innovation, and value creation.
Warm regards,
R. Seshasayee
Chairman