Nippon Paint halts launch of new premium products due to poor

Nippon Paint halts launch of new premium products due to poor market sentiment Chennai, Sep 6 (PTI): Facing poor market sentiment, paint major Nippon Paint has halted some of its premium product launches under the decorative category, a top company official said here on Friday. The company, which has launched several products, including odourless paints and Kids paint in the past, was "expecting to register a high single digit growth" in the current fiscal, Nippon Paint Pvt Ltd (Decorative division), President, S Mahesh Anand said.

"Industry is definitely affected. All public listed (paint) companies reported very good results in the first quarter. But in the current quarter (July-Aug-September), everybody are keeping their fingers crossed (on financial performance of the companies)," he told reporters.

Noting that Nippon Paint had also done well in the April-May-June quarter, he said they expected to post a "high single digit growth" in the coming quarters. He replied in the affirmative when asked whether the company was putting on hold its initiative to unveil new product launches under decorative business.

"Yes. We have. Anyway people are not buying premium decorative paints, so why launch that product?" The market sentiment was reflected in poor construction activity witnessed nationwide, he said. Decorative business constitute 50 per cent for Nippon Paint while remaining are in the industrial segments.

Anand, along with senior company officials and actress Vani Bhojan were in the city to launch joint initiative with Sodexo for painters, titled 'Amudha Surabhi'. Under the programme, painters will earn points by purchasing Nippon Paints, which they could redeem to purchase groceries or food across Tamil Nadu.

Nippon Paint will distribute 'Amudha Surabhi' cards to 45,000 painters across the State. "The card owners and their families can purchase groceries, food and non-alcoholic beverages from over 4,000 shops including kirana stores," he said.

Commenting on the tie-up with Nippon Paint, Sodexo SVC India, Vice-President, Sales and Marketing Suvodeep Das said, "we are happy to assist Nippon Paint in their digital initiatives. This partnership will facilitate the expansion of our consumer base in Tier II and III cities"..

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