KNL has increased its revenue contribution in decorative paints from 50% in FY09 to 55% in FY19. Further, capex of | 1100 crore to expand paint manufacturing capacity from 3.9 lakh tonnes (lt) to 5.5 coupled with strong decorative paint demands (at CAGR of 13%) would help drive overall volume CAGR at ~10% in FY19-21E. Strong demand for decorative paint would be largely driven by demand remaining intact from tier II, tier III cities and a shorter repainting cycle. Further, in the industrial paint category, KNL has not lost market share despite lower volume growth. We believe a gradual...