How will Grasim's entry impact Asian Paints, Berger? Amnish Aggarwal answers

economictimes.indiatimes.com:

Amnish Aggarwal, Head of Research, Prabhudas Lilladher, says “Asian Paints and Berger a few months back were the most expensive paint stocks globally. That was because of the resilient performance they have been giving and the growth in the Indian market because paints have been a very steady growth segment. But in the current context where a large player is making an entry, while Asian Paints and Berger would not, die out or lose massive market shares, but some advertising, realignment in incentives to distributors in some credit period and some other similar things cannot be ruled out. If that happens, definitely there could be some breaks in the margins or the earning trajectory in the near term.”
What kind of impact are you expecting with the entry of Grasim in the paints space and what are you waiting to hear from the management?
Amnish Aggarwal: Paints has been a sector where the entry of new players is not happening for the first time.

Over the years, we have seen many MNCs entering the sector, but somehow the incumbents have held on to their ground. However, I think the entry of Grasim is different from the earlier launches by MNCs or other players because the kind of investment which Grasim is indicating over the next five years or so, which amounts to say Rs 6,000 crore of capex is not something which any of the earlier entrants has committed to the sector, so that is one.