Kansai Paint Announces New Strategy: Revenue Target of 33.3 Billion RMB by 2027

On November 13, Kansai Paint Co., Ltd. (hereafter referred to as "Kansai Paint") released its strategic plan. According to the document, Kansai Paint announced its 18th Mid-term Management Plan (2025-2027), aiming to reach ￥700 billion (approximately $4.67 billion or ￥33.3 billion) in sales revenue by 2027.

According to the business plan, Kansai Paint plans to increase sales revenue from ￥610 billion in 2024 to ￥700 billion in 2027 (approximately $4.67 billion or ￥33.3 billion). The EBITDA margin is expected to rise from 14.6% in 2024 to 17.0% in 2027, and the adjusted ROE is expected to increase from 13% in 2024 to 15% in 2027.

By region, Kansai Paint's revenue is projected to increase as follows:

• Japan: From ￥165 billion in 2024 to ￥180 billion in 2027
• India: From ￥152 billion in 2024 to ￥180 billion in 2027
• Europe: From ￥166 billion in 2024 to ￥190 billion in 2027
• Asia: From ￥72.5 billion in 2024 to ￥80 billion in 2027
• Africa: From ￥45 billion in 2024 to ￥59 billion in 2027
• North America: From ￥9.5 billion in 2024 to ￥11 billion in 2027

Kansai Paint analyzed the future global world (by 2030) from the perspectives of the environment, innovation, politics, society, and the paint industry. 

In terms of the environment: as society’s expectations for a circular economy rise, related regulations are being established, and the trend of rapid technological evolution continues. In terms of innovation: technologies such as electrification, automation, and AI will penetrate all activities, changing existing business flows, cost structures, and players. Restructuring is happening across various fields. Large multinational companies are introducing new technologies and business models, creating discontinuous changes in people's lives and economic activities. In areas under constant regulation, the ongoing interaction between companies and regulators will lead to the formation of a healthy regulatory framework.

Regarding politics: movements will continue where corporate activities are greatly restricted by international politics and geopolitical forces, beyond the logic of capital markets. This is reflected in investment restrictions and impacts on material procurement and supply chains. Socially: Whether in B2B or B2C, a company’s reputation and brand depend on its contributions to society. The negative impacts of human conflict, fraud, slander, etc., are developing into various problems, while on the other hand, there is an emphasis on human society, requiring the evolution of human nature.

Kansai Paint stated that by 2030, the global paint market will see a further polarization between niche companies focusing on specific regions and businesses and those pursuing scale and profitability worldwide. However, compared to other industries, the decentralized market structure will continue to exist.

Regional Roles and Responsibilities

• Japan: As the global headquarters, it will create the future of the group by establishing supply chains that enhance circulation and economy, developing a highly competitive global human resource system, strengthening development fundamentally, acquiring new customers and new things, and promoting DX (Digital Transformation), and cultivating DX talent.
• India: As a unique high-growth comprehensive paint manufacturer, it will maintain its dominance in the automotive OEM paint market, develop the industrial sector as its third pillar, and establish a unique growth model in the architectural paint market.
• Europe: As a global leader in B2B, it will enhance profitability through structural reforms, establish a high-profit model in B2B, and lead the group through global B2B business.
• Asia: Strengthening its position as the leader in regional mobility, it will maintain the largest share as a major automotive production base, expand into non-Japanese automobiles, electric vehicles, and auto parts, and optimize regional operations in China and Southeast Asia.
• Africa: It will establish an Africa system and future layout, evolving into "One Africa" management, formulating a roadmap to conquer the African continent, and balancing market growth with governance.
• North America: Maintaining profitability and steady growth, it will expand high-profit businesses, broaden its business scope (from automotive OEM to auto parts and engineering), and assess the prospects of the North American market.

About Kansai Paint

Founded in 1918, Kansai Paint is a publicly listed Japanese company specializing in the research, production, and sales of automotive coatings, marine coatings, anti-corrosion coatings, architectural coatings, industrial coatings, various functional coatings, eco-friendly coatings, and resins and raw materials for coatings. It owns renowned brands such as “ALESCO” and operates in Japan, India, China, Thailand, Africa, Europe, the United States, and other countries and regions. In fiscal year 2024, it achieved sales revenue of $3.879 billion. 

According to its financial report, Kansai Paint achieved sales of ￥294.057 billion (approximately $1.916 billion) for the mid-term of fiscal year 2025, a year-on-year increase of 7.3%. Operating profit was ￥26.336 billion, a year-on-year increase of 2.3%, despite an increase in fixed costs, profit was improved through efforts such as cost reduction. However, operating profit decreased by 19.0% year-on-year to ￥25.996 billion, and net profit attributable to parent company shareholders was ￥15.685 billion, a 66.2% decrease year-on-year.