About Indigo Paints Ltd IPO
Indigo Paints (Indigo) is the fifth-largest decorative paints company in India, with a larger presence in tier 3/4 towns and rural areas coupled with a strong portfolio of differentiated products. It has clocked the fastest organic revenue CAGR of 29% in the past five years among the top five decorative paints companies in India.
The company was incorporated as “Indigo Paints Private Ltd” at Pune on March 28, 2000 and was later converted into a public limited company in August 2000. In order to expand footprint in southern India and gain access to solvent-based paints, Indigo acquired Kerala-based paints player Hi Build Coatings in FY16, which had a turnover of ₹123cr in FY16. With this acquisition, Indigo also gained access to manufacturing facilities in Kochi and Pudukkottai.
South India constituted 46%, while East India constituted 29% of the company’s sales in FY20. It is the #3 player in Kerala, close on the heels of the #2 player (Berger Paints) and almost twice the size of the #4 player (Kansai Nerolac) in that market. Indigo derives 45% of its sales from emulsion paints. Also, it has a distinguished portfolio of differentiated products based on end-use and value-added properties, which include products such as floor coat emulsion, bright ceiling coat, tile coat, dirt-proof and waterproof exterior laminate. As of March 2020, Indigo has three manufacturing facilities, one each at Jodhpur, Kochi, Pudukkotai, with a combined capacity utilization of ~48%.