I do not track in details either Asian paints or pidilite inds. I am not too much a fan of compounders as of now. ( who knows at a later date, I might decide to semi retire from markets and move into these type of companies 
But as long as I enjoy the challenge of finding big winners and techno funda investing, I am all for it)
But broadly speaking, Pidilite is a dominant force in its line of business and since that business is a very slow growing business, incumbents would not be interested in getting into the space. When the castle itself is small, even a smaller shallower moat will do because very few plunderers would be interested in raiding the castle as the riches are few.
Whereas Asian paints revenues are nearly 4 times that of Pidilite and hence more suitors would be interested in getting into the business. So a bigger more lucrative castle and hence needs more fortifications.
Assuming Pidilite getting 5-10% market share is easily said than done. Many players have tried and few have suceeded. So Pidilite getting into paints and using that as an investment argument does not cut too much ice for me. By itself, I think Pidilite is a fantastic business, and can be a good candidate for consistent compounder portfolio. However as mentioned in an earlier post, these need to be bought at times of distress.
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