Asian Paints is moving against the tide. Instead of cutting off salaries and people from the jobs- what all major companies are doing, Asian Paints, India’s biggest maker of paints is increasing salaries to boost the morale of its staff.
It is aiding the sale channels which includes full sanitization facilities for partner stores, insurance and hospitalization, and direct cash support. It also transferred Rs 40 crore into the accounts of its contractors.
As reported by Economic Times, MD and CEO of Asian Paints, Amit Syngle told that they have to create an example of true leadership and an organization which cares of all its stakeholders. It further reported what Amit told them that he sees this is a big opportunity to coordinate with every single employee in such uncertain times and that he has reassured all employees that they all are together in this.
Along with the making of sanitizers by the company, for Central and State COVID-19 Relief funds, the company has donated Rs 35 crores.
“The germination of the idea of sanitizers came from the Ministry of Chemicals, nudging us to make them….We came out with a range of hand and surface sanitizers under the brand name Viroprotek. This launch also resonated with our health & hygiene space foray where we already have Royale Health shield, an anti-bacterial and anti-asthma paint.”
The company expanding its product range into sanitizers will ensure a greater share of the customer wallet for the Asian Paints.
Alon with all these expenses, Asian Paints have been keeping an eye on all its cash flows, and delaying expenses where it can. Amit said that their company has been free of debt for years and that they are suitably placed even for a crisis which goes on for the next four or five months. He added that their company has announced a big dividend payout in March and their top priority is the return of shareholder.
For 3 years Asian Paints has an ROE of 25.49 per-cent which is quite good with a payout of 46 per-cent.