Indigo Paints: Ambit highlights key takeaways from the Analyst meet
Indigo Paints management highlighted that lower competition in differentiated products (29% of revenue) drives zero discounting and hence 8-10 ppt higher gross margins vs rest of the product portfolio. In terms of reach/distribution expansion, Indigo Paints strategy is to enter into 1 new state every year and focus only on tier-3/4 towns in terms of adding dealers during the initial 5-6 years and only once these tier-3/4 towns are completely concentrated is when they would move to tier-2 cities for dealer expansion.
Indigo Paints also currently has no intention to enter into adjacencies like Waterproofing, Industrial Paints and Automotive Pants due to ample opportunity for growth in decorative paints: Reuters