At the heart of India's oldest paint company, Shalimar Paints, CEO Ashok Gupta is leading a major transformation. In a highly competitive paint industry, Gupta wields a vision that encompasses modernisation of factories, a holistic drive towards enhanced efficiency and a culture of relentless innovation.

The paint company is directing its capital expenditure towards three core areas: people, research and development, and production, aiming for 25% year-on-year growth after a strong performance in the previous financial year, with a growth rate of 38-40%.

Over the past 18 months, Gupta's primary focus has been on expanding market share and fortifying the company's presence. This forward-thinking approach is geared towards proactively addressing future industry challenges while making strategic investments. These investments, Gupta believes, will not only heighten Shalimar's competitiveness but also pave the way for capturing a larger market share.

The company has rejigged the top management and hired new leaders to drive the comprehensive transformation strategy. Gupta, with over three decades of leadership experience, has a track record of transforming companies like Jindal Stainless and APL Apollo Tubes.

Here are the edited excerpts from the exclusive interview.

What drives you forward in your role as the head of one of the oldest paint manufacturers in India? 

The persistent stream of challenges. This is what propels me forward. It's an era of uncertainty and unpredictability that grapples us at a personal, organisational, or even geographical level. The unpredictable behaviour of industry players and consumers is challenging and, at times, quite unsettling. 

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Talking about the paint industry in particular, what trends are currently shaping it?

In recent years, the Indian paint industry has undergone a remarkable transformation. This shift can be attributed to economic liberalisation and the relaxation of regulations, which have empowered individuals and propelled industries forward. Simpler taxation and governmental support have played pivotal roles in this growth, particularly within the paint sector. What was once considered a basic necessity has now evolved into a demand for high-quality paint. This progression sets the stage for ongoing expansion and innovation, placing the paint industry ahead of both the Indian manufacturing sector and the global paint market.

Paint has taken on heightened importance as a hygiene factor. There's a keen awareness of potential risks associated with moisture or unclean surfaces. There's a noticeable trend towards sourcing paints and materials that strike a balance between affordability and quality, signalling a shift away from a singular focus on the cheapest options available in the market. 

How do you see the current tech landscape transforming this paints and coatings industry? How are players adapting to these changes?

Technology's impact is twofold. Firstly, in manufacturing, the integration of cutting-edge equipment, sensors, and automation control systems plays a pivotal role in optimising our processes. Secondly, there's a shift towards predictive servicing, emphasizing swift service delivery and timely provision of materials. Communication has expanded exponentially, offering diverse channels.

Across manufacturing, servicing, and supply chain management, we leverage technology extensively. This includes digital tools to assess market needs, leading to tailored product development. Automation, from formulation to packaging, ensures precision. Our sales force operates in a highly digitised environment with real-time information at their fingertips.

In marketing, we've embraced digital platforms extensively, anticipating a continued shift towards digital advertising and promotions. Technology is proving transformative, not only in manufacturing and R&D but also in marketing and sales strategies.

Do you see major advances in the much-talked-about 3D printing, nanotechnology, or smart coatings disrupting the traditional paint manufacturing landscape?

Certainly, advancements are in progress.  We're exploring areas like antiviral properties and nanoparticles. However, such groundbreaking technologies often require time, especially when they deviate from conventional methods.

In terms of specific technologies, we're concentrating on a few areas. Firstly, we're developing a custom layer for all our intellectual properties, ensuring limited access to safeguard our interests. Secondly, communication holds priority, and we're enhancing our capabilities in this domain. Thirdly, automation is a significant focus for us, with comprehensive plans for its implementation.

Shalimar Paints has recently restructured its top management and is investing significantly to modernise existing plants. How do these initiatives fit into the larger transformation strategy of the company?

Over the past year and a half, our main focus has been on expanding market share and fortifying our presence to proactively address upcoming industry challenges. This approach is aimed at addressing any foreseeable industry challenges while also attracting investment. These investments will not only bolster our competitiveness but also position us to capture a larger share of the market.

We've succeeded in ensuring that our revenue growth outpaces industry averages. This stems from a multifaceted approach, including innovative product development, production streamlining, supply chain optimisation, and strategic partnerships.

Our objective is to meet and exceed our targets. As an example, we recently introduced a product named 'Shalamar Hero,' emphasizing the idea of being a standout performer, much like in a cricket match. In a fiercely competitive landscape with numerous companies vying for a share, our plan is to drive sustained growth. 

What are some of the areas that you're working on specifically to be able to differentiate Shalimar Paints? What steps are you taking to ensure a competitive edge?

Just as there's a drive to find unconventional sources of energy, we're similarly dedicated to discovering unconventional avenues for paint development. This has led us to explore products that are not only aesthetically pleasing but also technologically advanced. Three key focus areas include:

1. Research and Development (R&D): R&D as a key to our differentiation strategy, we're in the process of establishing a state-of-the-art R&D centre, slated to be operational in the coming months. This centre will help us in the development of innovative new products. 
2. Team Expertise: Our team is a critical factor that sets us apart and we are keen to invest more in it.  
3. Consumer Engagement: Establishing strong connections with our consumers, as well as with our valued partners such as service dealers and painters, is a top priority. Making it to decipher their needs and preferences is really important.

Our strategy is clear-cut. We're investing significantly in R&D to bring practical, innovative products to the market. Equally, we're prioritising effective communication with our stakeholders.

We believe that a product's true worth lies in the value it brings. This drives us to create offerings that not only enhance appearance but also serve a practical purpose in safeguarding and enhancing assets.

By prioritising functionality alongside aesthetics, we aim to meet the evolving needs of our customers. We understand that, in addition to looking good, our products must serve a practical purpose in enhancing the longevity of their assets.   

How are you aligning this transformation plan with your talent priorities?  

In light of the rapid advancements in next-generation technologies and the transformation, we've set forth a multi-pronged strategy.  

• We're prioritising employee satisfaction and growth by offering more challenges, autonomy, and a sense of ownership in their work
• We make sure that every member of our company, from workers on the shop floor to leadership, undergoes training relevant to their roles.
• We are investing in programs that focus on the integration of technology into our processes, ensuring that our workforce is equipped to handle the demands of a technology-driven industry. 

Given the dynamic nature of the labour market, what steps is Shalimar Paints taking to not only attract but also retain top-tier talent, which is crucial for driving transformative change?

• Attracting and retaining top-tier talent is about providing them with the freedom to pursue their tasks in a way that resonates with their strengths and preferences. 
• We are making sure our processes and guidelines are clear and well-defined. This addresses a common challenge in the industry, which hinders productivity.
• It’s important to understand that some thrive in structured environments with clear guidelines, while others excel in more flexible, unstructured settings.  

We offer informal gatherings as a platform for our team members and their families to connect outside of the usual work setting, building stronger bonds and a sense of community.

The goal is to create an environment where individuals feel happy and motivated.  

Do you believe there is a need for greater gender diversity in the paint industry? If so, what measures is Shalimar Paint taking?

In our corporate office, we're proud to say that over 80% of our employees are women. However, the scenario in the manufacturing sector is different. The representation of women is considerably lower, though we're working to change that. We've made strides in bringing more women onto the shop floor, but there's still room for improvement. 

We firmly believe that the industry could greatly benefit from an increased presence of women. We're actively recruiting more women from various campuses.  

How important is employee well-being in the larger manufacturing sector? How does Shalimar prioritise well-being within its organisation?

Ensuring that employees have meaningful and satisfying work while providing the necessary facilities and amenities.

We believe in challenging our employees by assigning them more complex tasks. This doesn't mean we're reducing the number of people on our team; rather, we're focused on each individual taking on slightly more responsibility.

We want our employees to feel fulfilled, but not overwhelmed. This means that even though they might be working more hours, they should still feel technologically equipped to handle the demands.

We continuously assess our employees' performance and have structured review processes in place. Feedback is vital. We approach this from a perspective of improvement rather than fault-finding.   

As a CEO, what are your top challenges today and what strategies do you have in place to overcome them, especially in a market with several established players?

The competition in the market is fierce, especially from players who have significant financial resources at their disposal. When such players invest heavily, there's a natural tendency for people to be drawn towards them, assuming that their substantial investment implies a superior product or service. So, we are ramping up innovation and investing in R&D to develop products that stand out in the market and offer distinctive features and superior product quality. We aim to carve out our niche and establish a strong presence. We're focusing on effective communication to make sure that our existing and potential customers understand the unique value and quality that Shalimar Paints offers. 

Looking ahead two years, how do you envision Shalimar's position after this planned transformation?

At the core of any successful transformation lies people empowerment and the establishment of clear, well-defined processes. Our strategy focuses on robust processes and widespread empowerment to drive positive change. When someone feels empowered to make decisions, it propels progress. Well-defined processes, on the other hand, serve as a roadmap. Strong financial management fuels growth. Having sound financial management acts as the catalyst for growth, remaining vital as the lifeblood of the organisation.

Dive into our first series of exclusive interviews with CEOs and MDs of leading organisations by clicking this link. As part of this ongoing series called LeadingEdge, we contrinue to bring you fresh insights from top leaders in India, Singapore and beyond. Stay tuned!