Asian Paints Restructures Leadership, Joseph Eapen Appointed APIPL CEO

Asian Paints Ltd has announced a significant leadership reshuffle, with Joseph Eapen named Chief Executive Officer (CEO) of Asian Paints International Private Limited (APIPL). The changes, which will take effect from April 21, 2025, come amid a decline in the company's Q3 performance.

Key Leadership Changes at Asian Paints

• Joseph Eapen, currently Associate Vice President at APIPL, will assume the role of CEO.

  • Joined Asian Paints in 2000.

  • Expertise in supply chain and international operations.

• Rahul Bhatnagar, President – Project Sales, R&T, Industrial Joint Ventures, and Home Improvement, will add supply chain to his responsibilities.

  • Harish Lade (Senior VP – Supply Chain) will no longer be an SMP and will report to Bhatnagar.

• Pragyan Kumar, current CEO of APIPL, will transition to Senior Vice President – Retail Sales, Marketing, and Commercial.

  • Ashish Rae (VP – Retail Sales & Marketing) will no longer be classified as an SMP and will now report to Kumar.

Weak Q3 Performance Amid Restructuring

The leadership changes coincide with disappointing third-quarter financial results, which saw a sharp decline in profitability and revenue:

• Net Profit: ₹1,128 crore (down 23.5% YoY).

  • Market expectations: ₹1,150 crore.

• Revenue: ₹8,549 crore (down 6% YoY).

  • Market expectations: ₹8,830 crore.

• EBITDA: ₹1,637 crore (down 20% YoY).

  • Margins narrowed by 310 basis points to 19.5%.

Factors Behind the Weak Performance

• Muted demand conditions, affecting consumer spending.

• Downtrading trends, as customers opted for lower-priced alternatives.

• Weak festive season impact, leading to slower sales.

• Decorative business grew just 1.6%, missing analyst expectations.

Market Reaction

Despite the earnings disappointment, Asian Paints’ stock closed at ₹2,338.20, up ₹12 or 0.52% on the BSE, signaling limited negative reaction from investors.

What’s Next?

With a new leadership team in place, Asian Paints is expected to focus on strengthening its international business, improving supply chain efficiencies, and reviving growth in the domestic market. Investors will closely watch the company’s future strategies and market conditions for any signs of recovery.

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