Indigo Paints Ltd- IPO Review

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Let me first get started by : What is a Tinting machine? 

It is basically a mid-sized machine which using a few color combination can create a huge number of shades of emulsion paints(2000+).  Given, the huge number of variants and different sizes of product, it is very difficult to maintain inventories of these products, & hence the tinting machines becomes very important. Also, it is the largest segment  in the Indian decorative paint market & fastest growing as shown in the image above.

Now comes the problem: Tinting machines are unique to each paint company due to different colorants used, slide cards, custom software application, etc as well as different emulsion shades of different companies. 

Tinting machines are installed at the dealer’s place by these paint companies at their own cost.

Now given the size of the machine & space constraints with these shops, there is a stiff resistance by dealers to go for more than one tinting machine.

But Every company wants the dealers to use their own tinting machine. The solution is possibly to get on with new dealers. 

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Other than Tinting machine, a gyro shaker is required to shake the emulsion mixture formed by the combination of different colors to bring in uniformity. Gyro shakers are brand agnostic.

Typical pricing of tinting machine is ₹1.15 lac & that of gyroshakers are ₹30000-35,000 per machine.

Asian Paints with its reach is way beyond and presence in over 70,000+ dealers have already setup its own tinting machines creating big hindrance for other brands to get in. 



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Shekhar Yadav

Shekhar Yadav

It was only during the third semester in Engineering that Shekhar overheard a Gujarati guy in his class discussing stocks. After a few discussions with him, he realized that this was what he wanted to do in his life.
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