Asian Paints : Transcript of Analysts/Institutional Investor Meet/Con. Call

APL/SEC/32/2022-23/03

4th April, 2022

BSE Limited

Corporate Relationship Department Phiroze Jeejeebhoy Towers,

25th Floor, Dalal Street, Fort, Mumbai - 400 001 Scrip Code: 500820

Sir/Madam,

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1,

Block G, Bandra - Kurla Complex, Bandra (East),

Mumbai - 400 051 Symbol: ASIANPAINT

Asian Paints Limited Asian Paints House

6A, Shantinaga- Santacruz (E)

Mumbai 400 055

T :( 012) 62181000

F:{022) 62181111 www .asianpaints.com

Sub: Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Investor Conference

Further to our letter no. APL/SEC/32/2022-23/02 dated 2nd April, 2022, please find enclosed the transcript of the investor conference held on 1st April, 2022, on the recent acquisitions made by the Company. The transcript has also been uploaded on the Company's website. Following is the link:

Investor Conference Call - Transcript

This is for your information and record.

Thanking you,

Yours truly,

For ASIAN PAINTS LIMITED

R J JEYAMURUGAN

CFO & COMPANY SECRETARY

Encl.: As above

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"Asian Paints Investor Conference call"

ACQUISITIONS UPDATE

April 1, 2022

Investor Call - Transcript

R J Jeyamurugan - Good Evening ladies and gentlemen. This is Jeyamurugan, CFO and CS from Asian Paints. At the outset, we apologise for the delay in beginning the conference. We are thanking you all for coming to this meeting at a very very short notice. We announced two major acquisitions today, we thought it is appropriate to connect and discuss with you to give some details so that it makes the thing clear. Hence, we arranged this call. Disclaimer, before we get into the discussion, on this call we will not be discussing anything about quarterly numbers or company performance as we are in the silent period for the announcement of Q4 and 12 monthly results. So please restrict your questions only for the two acquisitions we announced today.

Along with me, we have today Mr Amit Syngle, our MD & CEO. I also have Mr. Parag Rane - GM Finance and Arun Nair from Corporate Communications.

Just to begin by giving a short profile, while we have given all the details in the today's stock exchange communication and also we have given the press release, just to give you a brief; we announced two acquisitions, one is 49% stake in White Teak - Decorative lighting products and fans company. Basically, we are taking 49% stake from this year for a consideration of approximately Rs.

180 crores also along with certain amount to be payable based on the achievement of certain financial milestones by the end of the financial year. Also, we are going to acquire another 51% also within a period of next 3 Years subject to achievement of certain financial milestones which I think we have given much more in detail in the press release and stock exchange announcement. I don't want to repeat because of the shortage of time. Basically, about this company, it is private limited company, it was established in 2016 by Silicon Valley technical technology entrepreneurs, Mr Pawan Mehta and Mr Gagan Mehta. They have been running this business and they have actually put up a strong platform offering customers an extensive range of decorative lighting products and fans and there are stores also across the network, across the country, in key Urban cities. So we thought, all of you are aware we have vision of becoming the most inspirational home decor brand. This helps us in partnering with the powerful kind of a brand extending over the current platform in a much more stronger way. I will ask Parag to explain something about the other acquisition which is Weatherseal.

Parag Rane - Yeah Hi, Good evening everyone. Just a small brief in terms of the second acquisition that we have announced today which is about acquiring 51% stake in the first stage by subscribing to fresh equity insurance by a company called Weatherseal Fenestration private limited. This is a newly established entity established by promoters in March 2022. The promoters are Mr. Harish Munireddy and Miss Pratibha and they have been in this line of business, which is in the business of uPVC windows and door systems for the past 7 years through a LLP. They would be undertaking thisbusiness in the uPVC windows and doors space through this newly established entity which is Weatherseal Fenestration private limited. Asian Paints would subscribe to 51% of the share capital, depending on the conditions precedent which needs to be closed over the next few days and it has also agreed that over the period of next three years it would acquire additional 23.9% stake from the existing set of promoters; the valuation for which would depend on achievement of certain milestones.

As a entity or as a business, it is primarily in uPVC windows and doors systems where Weatherseal promoters what they have done over last seven years is, they have built a very strong tech enabled platform that has enabled them to deliver a very seamless customer experience across B2B as well as retail customers and they have primarily establish the Weatherseal brand as a strong brand in the space in South India. So that is a small brief about Weatherseal. Thanks.

R J Jeyamurugan - Requesting participants, maybe we can take questions and answers

Amit Syngle - Sorry Jeya, just to kind of add to what Mr Jey and Parag has just said. One of the big things which I wanted to announce is that all of you are aware that we have been talking about our home decor foray in the last 2-3 years very very strongly. Especially in the last two years, we have announced this whole area of the movement from 'share of surface' to the 'share of space' within the home. We have felt that you know today, we are dealing with the same customer and Asian Paints as we kind of go ahead, we want to kind of really influence the customer during the entire life cycle of the home purchase. As part of that, we have been kind of getting into stronger categories and as you have seen whether it is kitchen, whether it is bath, whether it is in terms of other categories like fabrics and furnishing, we have been making forays very strongly so that we own up to these categories in a very strong way. The current initiatives which you see one is in the form of White Teak which you are seeing which is the whole decorative lighting space and the other area on Weatherseal which Parag just spoke of, which is in the uPVC doors and windows space, I think there is very strong forays which we have introduced so that in our purpose in terms of taking the whole journey of the 'share of space', that is something which is very very strong. I would also like to tell you that we feel that the whole home décor business is literally adding to the core business in a very strong way because we are looking at catering to the same consumer, who is kind of looking at doing the home but connecting with the same consumer during various cycles of home renovation and home purchase. So therefore what we see is that this entire foray in terms of home decor is contiguous to our overall strategy in terms of not only adding to the core business but also kind of really making our mark in the whole area of 'share of space' so that we can be with the customer in the whole area of customer life-cycle of home renovation and home purchase. So I thought I just add that point of view, so that you get a better understanding as to what is the purpose in terms of getting in terms of these acquisitions for the moment. So we would like to open the floor for people to ask questions now.

Moderator - Thank you sir. Requesting all participants who joined to please use the raise hand feature to ask question to the panellist. Kindly unmute when given chance to ask question. Please say your name and company name before you ask the questions. Kindly restrict the questions to only two due to the time constraints. Participants on zoom call can also post the questions on chat box feature on the bottom panel.

Our first participant is Mr Abneesh Roy from Edelweiss. Sir, request you to please unmute your mic and ask the question.

Abneesh Roy (Edelweiss) - Yeah thanks and congrats on both the acquisition. If I see Ess Ess and Sleek and those were acquired around 6-7 years back and currently you are doing a top line of around Rs. 200 crores put together around 2.5 percent of your sales. So my question for these two new acquisition is will the aggression be similar to what you have done in sleek and Ess Ess and second in terms of positioning is it a slightly niche, slightly more premium because fans and lights if you see it is extremely commoditise, and it is extremely competitive and similarly if you could explain the total market size in Weatherseal because that product seems to be very different and very new for paint company; so if you could address these 2-3 questions.

Amit Syngle - So thanks Abneesh. So see if you look at the entire area of kitchen and bath today, I think last two years have been very very strong and today if you look at the combined businesses they are more than Rs. 500 crores in terms of what we see in terms of going and what we see is going forward, these businesses will be close to more than Rs. 2500 crores in the next about 3-4 years, given the trajectory in terms of what we are taking in terms of going ahead. So what we see today is that it is not only that we want to further the kitchen and bath business, but also in terms of other categories which are essential in the home space. So yes, lighting is a regular category which you see which is the decorative lighting in terms of the Weatherseal which we have seen. Over a period of time, we see that the doors and windows which is the you know the whole area of balconies and overall doors which are coming in terms of all flats and bungalows, I think is becoming a very very strong category. It is a category which is almost about Rs. 11,000 crores and a category which is very strong with respect to both the retail and B2B space in a very strong manner. We feel that Asian Paints with its of kind of foray has very strong distribution points where we are able to kind of add to the retail business as well as we have our institutional business where we are able to reach out to the builders in a very very strong manner, where we would able to kind of propagate the whole areas of doors and windows in terms of the new homes in a very very strong way to that extent. In addition, we have a 'ColourPro' business which is reaching out to the architects and Interior designers and in the home renovation business what we are seeing is that the modern technology of the uPVC doors and windows which are coming for the balconies and for the French windows in bungalow so on an so

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