“We would like to clarify that the comments made by Amit Syngle are being misinterpreted,” said the industry bellwether.
The company said in an exchanges filing that his comments were in response to a specific query on the correlation between the growth in the paint industry and the GDP. “In that context, it was mentioned that the correlation of the paint industry growth with the GDP growth is varying, and we are unable to correlate both, unlike in the past. (Historically, the paint industry was seen growing at a multiple of 1.5 to 1.75 times the GDP growth; off late, this correlation was distorted).”
“It was, hence, called out that there is a need for examining the GDP data to understand the reasons for this variance,” it added.
The comments were not, in any way, meant to question the sanctity of the GDP numbers as being projected in these posts and articles, the company said.
Earlier today, ET Online reported that Asian Paints pointed to the lack of correlation between India’s gross domestic product (GDP) growth figure and the metrics of certain core sectors, expressing lack of surety over how to read the ‘real’ GDP.“You are correct that the GDP correlation has really gone for a toss, in the current year. I also feel that today, I am not very sure as to how the GDP numbers are coming,” Syngle had said.Syngle was responding to an investor query over how, with Asian Paints as the industry benchmark, the relationship between value growth and GDP growth has fallen out of place.
“Sometimes you feel that there is such a variation happening across industries,” Syngle said.
Syngle had noted that across core sectors like steel and cement, “nowhere is it correlating with the kind of possible overall GDP growth.”
India has retained its tag as the world’s fastest growing major economy in the recent years and its GDP is likely to grow 8 per cent in the ongoing financial year.
