Spend-IT: Asian Paints’ tech budget crosses ₹100-crore-mark riding on digital tech

Asian Paints, India’s largest paint company, has increased its investment in automation and digital transformation after seeing a dip in tech spending during the Covid-19 pandemic. In FY24, the tech budget rose by 24%, surpassing the pre-pandemic high of ₹70 crore in FY20 to reach ₹103.2 crore last year.

The Mumbai-based paints manufacturer has over 160,000 touchpoints in India and is investing in technology integration, automation, and capacity expansion through greenfield and brownfield initiatives to maintain its competitive edge. In the FY24 annual meeting, CEO Amit Syngle emphasised that investments in digital technologies like cloud computing, analytics and artificial intelligence (AI) have enhanced real-time visibility and optimisation in the supply chain.

 
An analysis of its annual reports in recent years shows that in FY22, IT expenditures surged by 50%, likely due to digital transformation efforts post-pandemic, after a 36% decline in 2021 linked to cost-cutting measures. Revenue growth was moderate at 4% in 2024 and 18% in 2023, while IT spending grew robustly at 23-24%. The highest revenue growth of 34% occurred in 2022, aligning with increased technology investment, suggesting a correlation between the two. 
 
The company has upgraded its core transaction systems to the latest SAP S/4HANA version, improving digital processes. The transition to a cloud-based CRM has improved efficiency and enabled real-time decision-making, expanding market opportunities and boosting sales.
 
While the company leverages AI to enhance collaboration, generate insights, improve efficiency, and elevate customer experience, it uses machine learning (ML) models for demand sensing and inventory management, which has improved order fill rates over the past two years.

Automation has further improved nationwide service delivery, allowing a focus on product development and marketing. Syngle said that the company uses data analytics for strategic decisions and trains data engineers, leading to cost reductions and better quality assurance through predictive monitoring. It also employs video analytics and AI for fraud prevention and integrates processes with a chatbot. That said, cybersecurity is a key priority, with the company having advanced threat monitoring in place for early detection of cyber threats.
 
Additionally, the paints major launched “cost-effective” customer acquisition campaigns across multiple channels, achieving high conversion rates, and created portals for brand managers to enhance visibility. Call centre operations now maintain 99.9% uptime and a centralised product information management system organises digital assets, it said.
 
In fiscal year 2023-24, Asian Paints automated HR functions like onboarding with tools such as Autopilot and invested in LinkedIn for employee training. A robust backend platform improves digital interactions with contractors, painters, architects, and designers, supporting a technology-driven influencer engagement strategy, said Syngle.