Asian Paints trims ad spend by 0.68% to Rs 1,297 crore in FY25, amid market challenges

Asian Paints made a marginal cut in advertising and promotional expenditure in the fiscal year 2025 to balance between the 'challenging' market and 'heightened competition'.

Asian Paints Managing Director and CEO, Amit Syngle said the entire coating industry was hit due to tepid consumer sentiments in FY25. Consequently, the paint giant cut its ads and promotional expenses by 0.68% to Rs 1,296.97 crore in FY25. However, with intensified competition due to the entry of new players and increased aggression from existing ones, Asian Paints also elevated distributional and promotional spending, putting strain on value realisation and profitability across segments.

Asian Paints' profit and revenue dropped significantly in fiscal year 2025. The company clocked a profit of Rs 3,585 crore in FY25--down 35% year-on-year. Whereas, the revenue from sales declined from Rs 31,093 crore in FY24 to Rs 29,421 crore in FY2025.

"The year saw further tapering of demand, continuing from a similar trend in the previous year. As a result, the coatings industry recorded a revenue decline, ranging from low single-digit degrowth to a flat performance for the year," Syngle said.

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Additionally, the slowdown in the construction sector and limited government spending on infrastructure affected the cement and steel industries, along with the coating industry.

"We witnessed consumers deferring spending on discretionary segments, including paints. This was further exacerbated by slow down in the construction sector and constrained Government spending on infrastructure affecting the core industries of cement and steel as well," Syngle said in the company's annual report of FY2025.

Unaffected by the industry sentiments, Asian Paints' marketing efforts were anchored in a cohesive and omnichannel strategy designed to engage audiences across platforms.

"We ran a cost-efficient customer acquisition campaign across multiple channels in the fiscal year 2025 to improve brand engagement", Syngle added.

For instance, the MD said that they reinforced 'Har Ghar Kuch Kehta Hai' proposition to drive emotional preferences across all consumer segmentation.

Syngle said that challenges on the external front whether through changing geopolitical terrain, uncertain and volatile macro-economic conditions, or through the emerging competitive landscape will exist forever. However, the company will maintain its focus on strengthening its teams’ capability to address all kinds of challenges.