Amit Syngle, the Chief Executive Officer (CEO) of Asian Paints, has stated that the next 25 years will bring significant changes to traditional methods of analyzing economic data, particularly regarding its influence on consumer behavior. He stressed the importance for companies to reevaluate long-established correlations between GDP and market growth.
“Over the next 25 years, we will witness disruptions in how we perceive the correlation with GDP,” Syngle shared with CNBC-TV18 Managing Editor Shereen Bhan during a discussion at the IBLA Jury meeting in Mumbai on Monday, October 7.
The Asian Paints CEO further emphasized, “The consumer segmentation that companies have traditionally depended on to identify their target audiences is no longer valid. The middle class, once a clearly defined demographic, is now evolving in more complex and diverse ways, prompting marketers to rethink their strategies.
He went on to say that this “growing middle class” is fueling a larger narrative about consumerism. The factors behind this, however, are changing, with changes in governance becoming more and more important.
These days, consumption growth is not only a result of economic growth; good governance can also drive the consumption narrative,” Syngle said.
Syngle on margin, growth outlook, and acquisitions
Highlighting the strategic focus and market outlook of the paint major, Syngle reiterated the company’s commitment to sustaining a profit margin between 18-20%, even amid fluctuations in raw material costs, which have begun to increase once more.
Additionally, Syngle indicated a willingness to explore the acquisition of segments of AkzoNobel’s business if they become available, suggesting potential avenues for expansion.
The second quarter’s performance was significantly affected by monsoons and flooding in various areas, impacting overall results.
Nonetheless, Syngle remains hopeful about the future, forecasting double-digit volume growth starting from the second half of the fiscal year.