Paint

Government
http://www.scribd.com/doc/24945245/Paint-Industry
investment
http://www.ibef.or/news/asian-paints-to-invest-rs-24!!-cr
Asian Paints to invest Rs 2,400 cr for manufacturing unit in
Nanjangud
The Times of India: September 26, 2014
Bengaluru: After osing t!e prestigious "ero #otocorp project to And!ra Prades! ast $ee%, t!e
&arnata%a government is on an aggressive drive to $oo investors and transform t!e state's image
as an investor(friend) destination*
A da) after S$edis! furniture retaier +%ea ined up investment of Rs ,00 crore in &arnata%a,
Asia's t!ird argest paint compan) Asian Paints is investing Rs 2,400 crore to set up a
manufacturing unit in Nanjangud in #)sore district* -!e 1.,(acre project $as ceared b) t!e State
"ig! /eve 0earance 0ommittee 1S"/002 recent)*
Asian Paints $i reported) set up a production unit $it! manufacturing capacit) of 6 a%! %ioitres
per da)*
-!e project $oud be roed out in t$o p!ases ( $it! manufacturing capacit) of 4 a%! %ioitres per
da) and 2 a%! %ioitres per da)* Asian Paints, $it! a turnover of Rs 12,.00 crore, operates in 1.
countries and !as 23 paint manufacturing faciities in t!e $ord servicing consumers in over 6,
countries*
-!oug! t!e project ran into !urdes reated to and ac4uisition, t!e state government is earnt to
!ave pued out a stops to approve it* 0!ief minister Siddaramaia!, $!o aso !ods t!e
commerce and industries portfoio, is said to !ave ta%en specia interest as t!e project $i be
based in !is !ome district and t!e decision $oud be seaed at 5rida)'s cabinet meeting*
-!e state mac!iner) is addressing investor grievances to avoid t!e fig!t of investment to
neig!bouring states* /ast $ee%, "ero #orocorp c!ose And!ra Prades! over &arnata%a to set up
a Rs 2,200(crore faciit)*
Ratna Prab!a, additiona c!ief secretar), commerce and industries department, tod -6+ on
-!ursda) t!at t!e Asian Paints pant $oud create direct empo)ment for 1,000 peope
immediate), and more in t!e coming da)s* 7-!e pant $oud be eco(friend), fu) automated $it!
amost 8ero disc!arge of effuents,7 s!e said*
As%ed $!et!er t!e government $as fast(trac%ing industria projects after it ost "ero #otocorp to
And!ra Prades!, Prab!a said reports of a9it) on t!e part of t!e department $ere not true* 7:ust
because one compan) opted for t!e neig!bouring state, it doesn't mean t!e state mac!iner) $as
so$* #an) projects !ave been ined up and $i be s!o$cased soon,7 s!e added*
Increased funding for infrastructure woos paint industry
Saurab! ;upta < 22 Nov, 2013
Due to increased Government funding for infrastructure, demand for paints both in
industrial and decorative segment is set to rise, thereby throwing open vast
opportunity for the Indian paint industry poised for further growth, said industry
experts Thursday.
"One Trillion Dollar Investment in Infrastructure is going to be a huge opportunity
for aints ! "oating Industry to grow," emphasised #ayant Davar, "hairman, "II
$orthern %egion at "II&s biennial "onference cum 'xposition ( ))th India *urface
"oating *how +,)- which started on Thursday in $ew Delhi.
.e added that Indian aints ! "oating industry is playing crucial role for
sustainable growth in manufacturing sector.
Davar further said that Indian aint ! "oating industry has shown impressive
growth, with entry of many international players, but still a lot need to be done to
meet the customer demands. "Demand for industrial paints is expected to
accelerate bac/ed by growth in the automobile sector shortly," he added.
%amesh " #ain, "onference "hairman, India *urface "oating *how +,)- said that
Indian manufacturing is poised to grow wherein the contribution of paint ! coating
industry is critical in meeting the need of 0utomotive sector which in turn has
ma1or contribution in Indian 'conomic growth.
.e said that current scenario provides wonderful opportunities to the Indian paint
Industry to adapt to the aspirations of the Indian buyer in terms of cost and
technology to meet the challenges of the future.
Indian aint ! "oating industry is passing through uni2ue phase in which growth
has to be achieved with combination of technology, cost innovation and
environmental sustainability has to be maintained with the increase in volumes.
"India *urface "oating *how, +,)- aims to present latest innovations in rocess,
'2uipment and 0pplication Technology, which will support Indian O'3s to prepare
and deliver aspirational products to the Indian buyer. The show is also committed
to further the spirit of innovation, thus changing consumer awareness, a new way
of influencing and stimulating technological innovations towards sustainability
including cost, process and conservation," he added.
0rvind 4apur, "hairman ! 3D, %ico 0uto Industries shared that 3anufacturing
sector is the cornerstone of Indian economy and plays a pivotal role to support this
growth cycle. .e called for the industry to be more cost competitive and innovative
to meet the customers aspirations and needs.
.e added that paint ! coating industry has a significant role to play to accelerate
the economic growth. .e also said that Indian aints ! "oating industry has
prospered and continues to deliver strong products for the industrial consumer with
innovative technology.
resent at the conference, 5alit 4umar ahwa, "'O, 'scorts 5td said that process
innovation is critical for the Indian paint industry. .e added that energy
consumption has an impact on environment ! productivity and hence its needs to
be conserved efficiently.
"6e need to innovate on e2uipment design in terms of space, shape and durability
and also focus on 4ai7en concept to improve production process and technologies,"
he added.
The two day conference cum exposition would focus on latest technologies in pre(
treatment, painting process ! e2uipment, advance application ! safety
The show mar/ed the presence of leading industry spea/ers from Germany, #apan,
"hina and India with participation of over 8,,. "ompanies li/e 4ansai $erolac,
"hemetall , 'isenmann, Durr, 9en1a/ob, 6agner and many others participated at
the show.
- "ee more at:
http://www.smetimes.in/smetimes/news/industry/2!#$/%ov/22/increased-
fundin-for-infrastructure-woos-paint-
industry&$!$9'.htm()sthash.49!&*a"f.dpuf
http://www.assocham.or/pre(s/shownews.php+id,4&'!
Domestic paint industry to cross Rs 62K crore mark by 2016-17: ASSOCA!
"#ursday$ September 0%$ 201%
&esti'a( season brin) bri)#t co(ours *or +ndian paints industry,
Indian paint industry is li/ely to surge from the current level of about %s. :,,;,,
crore to about %s. ;+,,,, crore by +,); witnessing a breathta/ing double(digit
compound annual growth rate <"0G%= of about +,>, apex industry body 0**O".03
said today.
The factors that have fuelled the paint industry&s growth are the rise in disposable
income and education, increasing urbani7ation, development of the rural mar/et and
various launches of many innovative products.
0s per the 0**O".03 recent report on -+ndian paint +ndustry: 201%. reveals
that India is the second(largest consumer of paint in 0sia. Top players include 0sian
aints, 4ansai $erolac aints, ?erger aints, 0/7o$obel, $ippon aints and *halimar
aints, adds the report.
-"#e +ndian paint industry #as seen a )radua( s#i*t in t#e pre*erences o*
peop(e *rom t#e traditiona( /#ite /as# to #i)#er 0ua(ity paints (ike
emu(sions and ename( paints.$ said !r1 D S Ra/at$ Secretary 2enera(
ASSOCA!1
0s per the 0**O".03 findings, the rural mar/et has grown at a rate of around +,>
a year <in financial year +,):=. Increase in sales outside metros, as rural India&s
incremental consumption expenditure is witnessing a handsome growth.

The rural sector has a ma1or share of the decorative paints segment. Thus, any
benefit to the rural sector for improving the dispensable income is directly co(related
to the growth of the paint industry. ?esides, decorative paints are mar/eting savvy
products bac/ed by large advertisement campaigns and dealership networ/s.

In @A):, the paint industry stood at %s :,,;,, crore with per capita consumption
increasing to over : /gs, out of which the decorative segment contributed nearly B-
per cent at %s +C,;-D crore, while the remaining %s ),,C;+ crore was contributed by
the industrial segment, adds the paper.
-Demands *or decorati'e paints arise *rom #ouse#o(d paintin)s$
arc#itectura( and ot#er disp(ay products1 "#e demand *or paint increases
durin) *esti'e season (ike Dus#erra$ Di/a(i$ Onam$ C#ristmas 34e/ 5ear$ as
compared to ot#er periods.$ said !r1 Ra/at1
The ma1or boost to the growth in Indian paint mar/et has been provided by the
decorative paint segment, which is anticipated to grow at a "0G% of more than )D>
during the period +,):()8.
The decorative paint mar/et has been further segmented into emulsions, enamel,
distemper and cement paints. *imilarly, the industrial paint mar/et is also
segmented into automotive coating, high performance coating, powder coating and
coil coating, adds the paper.
*ome of the ma1or reasons for the rise in the paint industry are awareness about
environment and increases in disposable income are leading to demand for premium
paints. The rising income levels and exposure to global trends have made consumers
very aspiring and also become health conscious and using environmental friendly
products, points out the 0**O".03 paper.
The unorganised sector controls around -8> of the paint mar/et, with the organised
sector accounting for the balance. In the unorganised segment, there are about
+,8,, units having small and medium si7ed paint manufacturing plants. Top
organised players include 0sian aints, 4ansai $erolac, ?erger aints and I"I.
&acts#eet
• Indian paint industry valued at %s :,,;,, crore <in +,)-():=
• The mar/et estimated around %s ;+,,,, crore by +,);
• Decorative paints accounted for B->, remaining being industrial
• The per capita paint consumption estimated to be : /g,
httpEFFwww.pro1ectsmonitor.comFsilent(spea/ersFnippon(paint(is(loo/ing(to(increase(its(
mar/et(shareF
6#at is t#e tota( si7e o* t#e paint industry in +ndia8 6#at is your current market
s#are and #o/ muc# /i(( it be in *i'e years8
The paint industry is estimated to be worth %s.+C,,,, crore. 6e have less than + per cent
mar/et share as on date. 6e are currently competing in limited geographies and in limited
categoriesG hence our mar/et share may not be comparable or meaningful. 6e want to be a
significant player in the years to come. 6e will be loo/ing forward to increasing our share to 8
per cent in five years time.
httpEFFwww.coatingsworld.comFissuesF+,,B(),FviewHfeaturesFthe(indian(paint(industryF
-!e +ndian paint industr) is over 100 )ears od* +ts beginning can be traced bac% to t!e setting up of a
factor) b) S!aimar Paints in 0acutta 1no$ &o%ata2 in 1=02* >nti ?ord ?ar ++, t!e industr) consisted of
sma producers and t$o foreign companies* After t!e $ar, t!e imports stopped, $!ic! ed to t!e setting up of
manufacturing faciities b) oca entrepreneurs* Sti, t!e foreign companies continued to dominate t!e
mar%et* +nitia) @ritis! paint companies suc! as ;oodass ?as 1no$ ;oodass Neroac2, +0+, @ritis! Paints
1no$ @erger Paints2, :enson A Nic!oson and @unde A Bomite dominated t!e mar%et*
-!ere are no$ t$eve pa)ers in t!e organi8ed sector of +ndia's paint and coatings mar%et and over 2,000 in
t!e unorgani8ed sector* +n 2003(04, t!e organi8ed sector !ed .0C s!are of t!e appro9imate) D1*, biion
1Rs 6,E00 crore2 industr), $!ie t!e baance $as made up of t!e unorgani8ed units*
-!e major pa)ers are Asian Paints, ;oodass Neroac, @erger, +0+ and S!aimar* Recent), $ord eaders
i%e A%8o Nobe, PP;, FuPont and @AS5 !ave set up base in +ndia $it! product ranges suc! as auto
refinis!es, po$der coatings and industria coatings* &ansai Paints of :apan, $!ic! entered into coaboration
$it! ;oodass Neroac in 1=E4, is no$ t!e !oding compan) for ;oodass Neroac $it! 64*,2Ce4uit)
!oding* PP; !as a joint venture $it! Asian Paints to manufacture industria coatings* :enson A Nic!oson
and Sno$cem +ndia are no onger active pa)ers because of d$inding saes in recent )ears*
+n t!e 1==0s, !eped b) a gro$ing econom), t!e +ndian paint industr) recorded a !eat!) gro$t! of 12(13C
annua)* -!is $as main) due to a drastic reduction in e9cise from a staggering 40C to 16C* "o$ever, t!e
gro$t! $as restricted in 2002(03 to singe digits* -!ere $as a reviva in 2003(04 $it! a robust gro$t! of
13C*
-!e +ndian paint industr) !as t$o main mar%et segments(industria and decorative paints* ?!ie industria
paints are used for protection against corrosion and rust on stee structures, ve!ices, $!ite goods and
appiances, decorative paints are used in protecting vauabe assets i%e buidings*
-!e +ndian decorative business !as a s!are of appro9imate) ..C in tota saes* +n foreign countries ,0(.0C
of t!e business is from t!e industria segment*
-!e trends are i%e) to s!ift in +ndia too, but at a so$er pace, in favor of industria paints* -!e per capita
consumption of paint in +ndia is .00 grams versus 1= %g in t!e >*S* and 2*. %g and ,*E %g in ot!er
deveoping countries i%e 0!ina and @ra8i* @ecause consumption reates to affordabiit), t!e o$ +ndian
figure is not a surprise*
?it!in t!e decorative segment, t!e s!are of e9terior paints is 21C, interior emusions 11C, distempers 30C,
sovent(based ename paint 36C and $ood finis!es t$o percent*
-!e e9terior categor), particuar) e9terior emusions, is t!e fastest gro$ing segment at 20C for t!e ast
t!ree )ears*
-!e industria coatings segment incudes !ig! performance coatings� $it! 30C mar%et s!are, po$der
coatings $it! ten percent, coi coatings� $it! five percent, marine coatings five percent and automotive
coatings ,0C*
?!ie Asian Paints $as a cear mar%et eader $it! a turnover of appro9imate) D420 miion 1Rs 1,=43
crores2 in 2003(04, ;oodass Neroac $as second $it! appro9imate) D220 miion 1Rs 1,010 crores2 during
t!e same period*
Organization System
#ost of t!e organi8ed companies in +ndia's paint and coatings mar%et !ave a nation$ide presence $it!
mutiocation manufacturing faciities* -!e companies in t!e unorgani8ed sector are most) regiona, spread
in and around t!eir manufacturing faciities and dea in o$ vaue products*
Asian Paints !as created a nation$ide mar%eting campaign focusing on a sma interior mar%ets* Not on)
$as t!e compan) abe to estabis! itsef in interior mar%ets, t!e demand percoated to main to$ns ao$ing
t!e compan) to enist support of arge customers*
@eing restrained b) 5BRA 15oreign B9c!ange Reguations Act2 and� #R-P 1#onopoies A Restrictive
-rade Practices Act2, most pa)ers $ere not ao$ed to increase production capacities unti t!e Nineties*
?it! iberai8ation, t!ese s!ac%es $ere removed and ot!er companies !ave e9panded, t!oug! t!e gap
bet$een Asian Paints, $!ic! coud e9pand continua) and ot!ers !as $idened*
Anot!er $inning point for Asian Paints $as its strateg) to focus on smaer pac%s $!ie ot!ers $ere focusing
on arger pac%s* Asian Paints !as aso been introducing ne$ product categories, $!ic! !eped in e9panding
t!e mar%et*
-!is made distribution sti more compe9 as precise forecasts for more t!an 3,000 S&>s became a
c!aenge for ever) organi8ation* ?it! t!e advent of coor dispensing mac!ines supported b) a paint
companies and sop!isticated +- enabed distribution toos, t!e situation !as eased considerab)*
Business Reengineering
?it! t!e industr) business becoming compe9, most companies !ave restructured and !ave used
information tec!noog) as t!e %e) driver for reengineering* -!e) !ave aigned t!eir organi8ed structures on
t!e basis of e9panding business and its compe9ities* -!is $as essentia in order to tig!ten contros*��
��� ��� ��� ��� �-oda), companies !ave divided t!eir saes organi8ations into decorative,
industria and !ig! performance coatings business units* -!e nationa eve organi8ation structure is spit into
8ones, regions and branc!es*
0oor dispensing mac!ines, bot! computeri8ed and manua, !ave transformed t!e business, particuar) on
t!e manufacturing and distribution sides* Barier, paint companies $ere re4uired to manufacture a t!e
s!ades 130(,0 depending on a product ine2 in a t!e pac%s 1five to eig!t pac%s2*
-!e demand pattern $as difficut to predict even $it! t!e support of !istorica dataGtrends as consumer
preferences $ere c!anging fast* -!e mac!ines atered t!e production pattern from s!ades to producing
bases t!us providing economies of scae, reduced inventor) eves and eiminated redundanc) of stoc%s* +t
!as cut do$n t!e ne$ products introduction c)ce considerab)* -!is !as !eped e9pand t!e range of s!ades
for eac! product categor), offering a c!oice of s!ades to consumers in t!e !undreds* 5or t!e retaiers aso, it
eiminated t!e saes oss for $ant of rangeGdesired s!ade* -!e mac!ines !ave broug!t a tota c!ange in t!e
$a) business is transacted and revoutioni8ed business processes as $e*
-!ere are appro9imate) 11,000 coor(tinting mac!ines instaed at t!e deaers' end incuding mutipe
mac!ines on some counters* Aso popuar are t!e gear mi9ers for 2& finis!es in auto refinis!es, $!ic! are
instaed at t!e deaers' end and at eading garages*
-!e dependence on information tec!noog) !as increased remar%ab) from a corner room BFP operation to
pa)ing a pivota roe in t!e $a) business in transacted* ?!ie Asian Paints !as invested in i2 tec!noog),
;oodass Neroac !as bac%ed up +@# enabed AP6 and !as upgraded to t!e atest 3*1 version to improve
its distribution and optimi8e production sc!eduing* @ot! companies are operating on an BRP 1SAP R32
operating s)stem t!roug! fu connectivit) across t!e factories and branc!es via H(SA-S, t!us virtua)
$or%ing on ive data for saes, accounting and purc!asing*
;oodass Neroac !as moved one step furt!er b) aunc!ing its intranet(empo)ee porta to capture
%no$edge sitting in t!e mindsGdes%tops of individuas to a common patform, $!ic! can be accessed b) a
empo)ees* +t !as aso invested in advanced business pan performance measurement toos i%e baanced
score cards to trac%, revie$ and aign performance*
#ost companies in t!e +ndian paint industr) are functioning on muti(division modes $it! individua functions
controed b) business !eads* Some manage t!eir business t!roug! sub(committees* As in t!e case of
;oodass Neroac t!ere are t$o eves of teams managingGguiding business*
?!ie a t!e poic) and major decisions are oo%ed at b) t!e management committee 1#02, $!ic! revie$s
operations on a mont!) basis, t!ere is a parae team(business ana)st team 1@A-2($!ic! ana)8es t!e
businesses and discusses ne$ initiatives, $or%ing as t!e t!in%(tan% for t!e compan)* Recent) 0A-
10reative Ana)sis -eam2 !as been created to $or% on ne$ ong(term initiatives*
Product Culture
#ost companies !ave an identica range of products for t!e decorativepaint mar%et* +n t!e industria
segment, t!e range of products is more customi8ed and guided b) t!e tec!noog) support provided b) t!e
coaborators* +n t!e case of decorative products t!e tec!noog) !as been most) indigenous) perfected
over t!e )ears and t!e products can be divided on t!e basis of interior and e9terior appication or in
categories i%e $ater(based and sovent(based* #oreover, most companies !ave been advertising t!eir
products in t!e e9terior emusions categor), $!ic! !as e9panded t!e mar%et and triggered a s!ift from
cement paint*
?!ie sovent(based enames are sti popuar in +ndia, outside +ndia t!ere is a cear s!ift visibe from sovent(
to $ater(based goss) enames* +ndia $i ta%e some time before t!is c!ange is accepted on account of t!ree
!urdes current) faced incuding cost 1$ater(based is e9pensive2, o$ eve of goss in $ater(based enames
and t!e ps)c!oogica barrier t!at $ater(based coatings cannot be superior to sovent(based coatings for
protecting $ood or meta surfaces*
0ompanies not $or%ing on operationa efficienc) business modes !ave been osing* Asian Paints and�
;oodass Neroac !ave been aggressive) $or%ing on cutting costsGoperating e9penses* @erger !as been
managing $e $it! economica )et acceptabe formuations and o$ operating costs*
-!e industr) is not capita intensive and depreciation c!arges are not significant* ?or%ing capita
re4uirements are moderate* "o$ever
most companies in t!e o$er rungs are una$are about t!e reai8ation of debtors* Added to t!is !as been t!e
probem reated to coection of instaments on coor dispensing mac!ines, $!ic! are most) purc!ased on
ease*
-!e !ig!est efficienc) re4uired is in p!)sica distribution* -!e poor forecasts of demand resut in poor
distribution* As a resut, companies are investing in sop!isticated supp) c!ain management toos* #argins
!ave remained under pressure due to dropping prices, $!ic! !ave been more strategic and forced b) t!e
mar%et eader* 0ompanies !ave been $or%ing on improving interna efficiencies to retain profits* -!e
pressure from 6B#s to reduce prices !as aso been a cause for o$ profits for paint companies* Bven $it!
t!e turnaround of t!e +ndian econom), t!e pressure !as not reented* -!e customer, or retaier, !as aso
been dictating !is terms as most companies !ave common counters to meet t!eir objectives* So t!e) !ave
no c!oice but to ure more customers t!roug! incentives* /o$er productivit) of !ig! cost abor in t!e od
units !as been anot!er probem* -!is in totait) !as increased operating pressures*
Some of t!e internationa pa)ers are aread) present in +ndia's paint and coatings mar%et, but most) for
industria coatings* -!e) incude A%8o Nobe, @AS5, "en%e 1pre(treatment c!emicas2, PP;, +0+
1decorative2 and FuPont 1auto refinis!es2* A fe$ ot!ers are present t!roug! coaborations i%e &ansai and
Nippon*
5or t!e decorative range of products, it is difficut for internationa companies to set up s!op on a stand
aone basis because of e9isting barriers suc! as t!e strong net$or% of estabis!ed pa)ers, brand image,
range of products 1+ndian conte9t2 and re4uired distribution ogistics* -!erefore, t!e safer route !as been
and $i be to tag aong $it! e9isting companies* 5or industria products, !o$ever, t!is ma) not app) and
based on t!eir tie(ups in !ome countries and t!eir 6B# customers, t!e re4uired range can be made and
sod*
-!ere is !o$ever room for nic!e pa)ers, $it! radica and uni4ue ranges of products proper) conceived and
mar%eted in t!e +ndian conte9t and supported $it! mac!ines*
Current Trends
-!e +ndian paint and coatings industr) is riding !ig! on t!e gro$t! in t!e +ndian automobie industr), ne$
construction in t!e !ousing segment and improving infrastructure t!roug!out t!e countr)* -!irt) percent of
t!e paint business is comprised of ne$ construction projects* ;FP gro$t! projections of si9 to 6*,C in t!e
current )ear mean a gro$t! of nine to ten percent in +ndian paint business* -!e gro$t! $i be 12(13C in t!e
industria segment and eig!t to nine percent for decorative paint* -!e +ndian automobie industr) !as been
performing remar%ab) $e and $i benefit t!e mar%et eader in t!e segment, ;oodass Neroac*
As for t!e future, t!e industr) !as predicted a 0A;R of eig!t to nine percent for t!e ne9t five )ears
compared to ast )ear's gro$t! eves of 2.*4C for cars and E*=C for t$o $!eeers* -!e +ndian !ousing
industr) is i%e) to do $e in t!e current )ear as $e, recording a gro$t! rate of 3,C ast )ear* As a resut of
t!e overa !eat! of +ndia's econom), it is safe to predict a nine to ten percent gro$t! rate for t!e +ndian paint
industr) in t!e ne9t five )ears*
0onsumers can oo% for$ard to ne$ product aunc!es, some for appication in specia areas* 0ompanies $i
be increasing t!e vaue added services avaiabe to customers b) offering a variet) of finis!es t!roug!
speciai8ed and trained appicators* -!ere $i be more options i%e ranges of coorsGfinis!es for $ood
appications t!roug! t!e tinting mac!ines* Additiona), t!e trend to$ards $ater(based coatings is i%e) to set
in bot! for industria and decorative appications* ?!ie +ndia !as not )et embraced t!e F+I concept as
c!eap abor is sti avaiabe, e9cusive retai c!ain stores sponsored and run b) +ndian paint companies $i
become a reait)*
-!e +ndian paint industr) !as progressed $e and moving a!ead is i%e) to be infuenced b) severa factos
incuding ne$ tec!noogies, ne$ innovative products, ne$ associations, consoidation of industr) and poor
performers getting out of t!e mar%et* >timate), in t!e )ears a!ead t!ere $i be on) four or five %e) pa)ers
operating in t!e +ndian paint mar%et*
Sidebar
alspar eyeing the Indian mar!et
Haspar 0orporation, t!e D2*=.(biion goba paint manufacturer, is panning to enter t!e +ndian paint mar%et*
-!e #inneapois(based compan) !as !ed ta%s $it! @aroda(based ;rand Po)coats, an unisted firm t!at
speciai8es in ma%ing protective industria coatings*
;rand Po)coats 056 #aui% #e!ta confirmed ta%s $it! Haspar, but said it $as not up for sae* 7#an)
companies, incuding Haspar, !ave approac!ed us but $e !ave our o$n strateg) for gro$t!* -!ere's no
reason to se out at t!is point*''
"e coud afford to sa) so* ;rand Po)coats, $!ose protective coatings are used in auto parts, engineering
and capita goods, c!emicas and petroc!emicas, !as been gro$ing at amost doube t!e industr)'s average
gro$t! of ten to 12C*
-!e compan) is among t!e top five pa)ers in protective coatings and !as given paint majors i%e A%8o
Nobe, &ansai Paints, Asian Paints and @erger Paints a run for t!eir mone), according to e9perts* Haspar
didn't respond to an e(maied 4uestionnaire*
Haspar, a eading paint and coatings manufacturer, is oo%ing to e9pand overseas* -!oug! Haspar ma%es a
$ide range of coatings, paints and reated products, it is %no$n for its coatings, $!ic! are used in protecting
man) iconic brands from t!e green t!at defines :o!n Feere's tractors to 0oco(0oa's red cans and
0aterpiar's mac!ines*
Haspar !as gro$n t!roug! ac4uisitions in t!e 1=E0s and 1==0s, and is no$ tr)ing to gro$ be)ond t!e >*S*(
current), 30C of its saes come from outside t!e >*S* compared $it! five percent a decade ago* +ts success
in 0!ina !as pus!ed its annua saes gro$t! in e9cess of 20C per )ear*
-!e ac4uisition(ed strateg) !as !eped Haspar post good resuts increasing its net profit 1=C in 2006 due
to =*.C gro$t! in saes* +n :u) 2006, Haspar ac4uired an E0C sta%e in "uarun Paints, a suppier of
furniture, decorative and ac!itec!tura coatings in 0!ina, for D200 miion*
+n 6ctober 2006, Haspar aso ac4uired "* @* 5uer's po$der coatings business, mar%ing its first po$der
manufacturing faciit) in Burope* +t pans to use t!is to serve its industria customers $ord$ide* +n 2006, t!e
compan) aso entered into a joint venture $it! -e%no S A to supp) coi coatings in @ra8i*
?it! t!e +ndian paint mar%et gro$ing at ten to 12C and most of its goba peers aread) !ere, it can !ard)
ignore t!is mar%et*
''?!at's attracting goba majors is t!e gro$t! prospects !ere* +n infrastructure, +ndia is tr)ing to buid in t!e
ne9t five )ears $!at it !as buit over t!e ast 60 )ears,'' said #e!ta*
5or t!e protective business, $!ic! is ;rand Po)coats mainsta), infrastructure is t!e main driver for gro$t!*
-!is !as a tric%e do$n effect on t!e demand for capita goods and e4uipment, according to #e!ta* +f ;rand
Po)coats doesn't materiai8e, Haspar coud e9pore ot!er opportunities in +ndia, incuding setting up a
greenfied pant*
Sidebar
"a#or Paint and Coatings "anufacturers Ride India$s Real %state Boom
Riding on t!e bac% of a rea estate boom, paint companies are e9treme) buis! on +ndia, $!ic! is among
t!e fastest gro$ing mar%ets across t!e gobe*
Among t!e internationa companies t!at are increasing t!eir investments is t!e :apanese paint major,
Nippon, $!ic! is investing appro9imate) Rs E0 crore for manufacturing faciities in ;urgaon and a 2,(acre
unit in 0!ennai*
?it! A%8o Nobe i%e) to ac4uire +0+ Paints goba) for D16 biion, t!e Futc! giant $i aso increase its
business in +ndia*
A%8o aread) !as a po$der coatings business in +ndia t!roug! its ac4uisition of 0ourtauds in :u) 1==E, and
it !as aso entered t!e decorative paints segment*
FuPont is aso e9pected to e9pand its presence in +ndia*
+ndustr) e9perts e9pect ot!er companies i%e @e!r and @AS5 to set up s!op in +ndia as $e*
-!e Rs 11,000(crore +ndian paints mar%et is gro$ing at doube digits and t!e decoratives segment, $!ic!
accounts for .0C of saes, is gro$ing in e9cess of 20C*
Asian Paints, t!e countr)'s argest paint manufacturer, aso !as major e9pansion pans* -!e compan) is
setting up its argest faciit) at Ro!ta% in "ar)ana* +t $i focus on emusions*
7-!e demand !as e9ceeded our capacit) and !ence $e are oo%ing at t!is ne$ pant,7 said As!$in Fani,
vice c!airman and managing director, Asian Paints*
0ompetitor &ansai Neroac is aso panning an 1E,000(ton pant at a cost of Rs 6E crore, $!ic! $i start
production in t$o or t!ree )ears* @erger Paints !as .,C of its business in decorative paints* 7+n +ndia, t!e
!ousing sector is booming and t!is !as provided a major boost to t!e decoratives business* -!is segment is
e9pected to gro$ at 1E(20C,7 said Ab!ijit Ro), vice(president mar%eting, @erger Paints* J
http://www.business-standard.com/article/news-cm/domestic-paint-industry-to-
cross-rs-62k-crore-mark-by-2016-17-assocham-114090400!7"1.html
#ndian paint industry is likely to sur%e &rom the current le'el o& about (s. 40)600
crore to about (s. 62)000 crore by 2016 witnessin% a breathtakin% double-di%it
compound annual %rowth rate *+,-(. o& about 20/) ape0 industry
body,112+3,4 said.
5he &actors that ha'e &uelled the paint industry6s %rowth are the rise in
disposable income and education) increasin% urbani7ation) de'elopment o& the
rural market and 'arious launches o& many inno'ati'e products.
,s per the ,112+3,4 recent report on #ndian paint #ndustry: 2014 re'eals that
#ndia is the second-lar%est consumer o& paint in ,sia. 5op players include ,sian
8aints) 9ansai :erolac 8aints) ;er%er 8aints) ,k7o:obel) :ippon 8aints and
1halimar 8aints) adds the report.
5he #ndian paint industry has seen a %radual shi&t in the pre&erences o& people
&rom the traditional white wash to hi%her <uality paints like emulsions and
enamel paints) said 4r. = 1 (awat) 1ecretary -eneral ,112+3,4.
,s per the ,112+3,4 >ndin%s) the rural market has %rown at a rate o& around
20/ a year *in >nancial year 2014.. #ncrease in sales outside metros) as rural
#ndia6s incremental consumption e0penditure is witnessin% a handsome %rowth.
5he rural sector has a ma?or share o& the decorati'e paints se%ment. 5hus) any
bene>t to the rural sector &or impro'in% the dispensable income is directly co-
related to the %rowth o& the paint industry. ;esides) decorati'e paints are
marketin% sa''y products backed by lar%e ad'ertisement campai%ns and
dealership networks.
#n @A14) the paint industry stood at (s 40)600 crore with per capita consumption
increasin% to o'er 4 k%s) out o& which the decorati'e se%ment contributed nearly
7! per cent at (s 29)6! crore) while the remainin% (s 10)962 crore was
contributed by the industrial se%ment) adds the paper.
=emands &or decorati'e paints arise &rom household paintin%s) architectural and
other display products. 5he demand &or paint increases durin% &esti'e season like
=usherra) =iwali) 2nam) +hristmas /:ew Aear) as compared to other periods) said
4r. (awat.
5he ma?or boost to the %rowth in #ndian paint market has been pro'ided by the
decorati'e paint se%ment) which is anticipated to %row at a +,-( o& more than
1/ durin% the period 2014-1B.
5he decorati'e paint market has been &urther se%mented into emulsions)
enamel) distemper and cement paints. 1imilarly) the industrial paint market is
also se%mented into automoti'e coatin%) hi%h per&ormance coatin%) powder
coatin% and coil coatin%) adds the paper.
1ome o& the ma?or reasons &or the rise in the paint industry are awareness about
en'ironment and increases in disposable income are leadin% to demand &or
premium paints. 5he risin% income le'els and e0posure to %lobal trends ha'e
made consumers 'ery aspirin% and also become health conscious and usin%
en'ironmental &riendly products) points out the ,112+3,4 paper.
5he unor%anised sector controls around !B/ o& the paint market) with the
or%anised sector accountin% &or the balance. #n the unor%anised se%ment) there
are about 2)B00 units ha'in% small and medium si7ed paint manu&acturin%
plants. 5op or%anised players include ,sian 8aints) 9ansai :erolac) ;er%er
8aints and #+#.
@actsheet
#ndian paint industry 'alued at (s 40)600 crore *in 201!-14.
5he market estimated around (s 62)000 crore by 2016
=ecorati'e paints accounted &or 7!/) remainin% bein% industrial
5he per capita paint consumption estimated to be 4 k%
httpEFFwww.business(standard.comFarticleFcompaniesFpaint(ma/ers(turn(to(bharat(for(
growth())-)+-),,+D-H).html
Cike other consumer %oods companies) paint makers ha'e also started lookin%
beyond cities. 5heir :ew Aear resolution is to enter the le%ions o& 'illa%es and
small towns or increasin% their reach i& they are already present there. @or) they
belie'e only ;harat promises accelerated %rowth.
D(ural market is a bi% hope &or us. #t is dri'in% our sales. Ee are e0pandin% our
distribution network in these locations to make the most o& this opportunity)F
(amakanth G ,kula) president *decorati'e.) :ippon #ndia) told ;usiness 1tandard.
201! was tou%h &or the sector. 3opes o& a re'i'al in demand a&ter a %ood
monsoon and durin% the &esti'e season were dashed by hi%h inHation.
+ompanies say paint is a discretionary e0penditure I consumption &alls durin%
periods o& risin% inHation.
5o their surprise) paint makers ha'e &ound that while demand remained tepid in
cities) consumption was risin% in rural areas. , top oJcial o& a Kapanese paint
maker said re<uestin% anonymity: D5he rural market has %rown at a rate o&
around 20 per cent a year *in >nancial year 201!.. 5his is way abo'e the %rowth
rate in urban centres. Ee e0pect &urther increase in sales outside metros) as rural
#ndia6s incremental consumption e0penditure is witnessin% a handsome %rowth.F
5he increasin% reach o& media in 'illa%es has also helped paint makers) makin%
easier &or them to ad'ertise their products in these re%ions. +ompanies ha'e also
disco'ered that demand &or premium paints is hi%h e'en in remote locations.
L=ue to %ood monsoon rural #ndia has bucked the trend. (ural centres in states
like 8un?ab and 5amil :adu are dri'in% ma?or part o& our sales)L ,bhi?it (oy)
mana%in% director o& ;er%er 8aints in #ndia) said.
5he market si7e o& the paint industry in #ndia is estimated at around (s 29)000
crore. #ndustry players e0pect close to 12/ %rowth in business 'olume and 10-
12/ rise in turno'er this >nancial year. L:e0t >scal can only be better than what
the industry has seen so &ar this year. (ural reach will be crucial as most o& the
companies would be battlin% it out in the hinterlands)L the oJcial with the
Kapanese paint maker said.
5he rural opportunity combined with easin% prices o& rutile) a key raw material)
promise 2014 to be a better year &or #ndian paint companies.
httpEFFwww.e2uitymaster.comFresearch(itFsector(infoFpaintFaints(*ector(0nalysis(%eport.asp
-!e paint industr) is e9pected to gro$
at 12(13C annua) over t!e ne9t five
)ears from Rs 2E0 bn in 5I13 to
around Rs ,00 bn b) 5I1E* 5I13 $as
a c!aenging )ear for t!e industr) as a
$!oe due to subdued demand across
%e) sectors and rising infation*

-!e unorganised sector contros around 3,C of t!e paint
mar%et, $it! t!e organised sector accounting for t!e
baance* +n t!e unorganised segment, t!ere are about
2,000 units !aving sma and medium si8ed paint
manufacturing pants* -op organised pa)ers incude
Asian Paints, &ansai Neroac, @erger Paints and +0+*

Femand for paints comes from t$o broad categories:
&ecorati'es: #ajor segments in decoratives incude
e9terior $a paints, interior $a paints, $ood finis!es
and ename and anciar) products suc! as primers,
putties etc* Fecorative paints account for over ..C of t!e
overa paint mar%et in +ndia* Asian Paints is t!e mar%et
eader in t!is segment* Femand for decorative paints
arises from !ouse!od painting, arc!itectura and ot!er
dispa) purposes* Femand in t!e festive season
1September(Fecember2 is significant, as compared to
ot!er periods* -!is segment is price sensitive and is a
!ig!er margin business as compared to industria
segment*
Industrial: -!ree main segments of t!e industria sector
incude automotive coatings, po$der coatings and
protective coatings* &ansai Neroac is t!e mar%et eader
in t!is segment* >ser industries for industria paints
incude automobies engineering and consumer durabes*
-!e industria paints segment is far more tec!noog)
intensive t!an t!e decorative segment*

-!e paints sector is ra$ materia intensive, $it! over 300
ra$ materias 1,0C petro(based derivatives2 invoved in
t!e manufacturing process* Since most of t!e ra$
materias are petroeum based, t!e industr) benefits from
softening crude prices*
(ey Points
Supply Supp) e9ceeds demand in bot! t!e decorative as $e as t!e industria
paints segments* +ndustr) is fragmented*
&emand Femand for decorative paints depends on t!e !ousing sector and good
monsoons* +ndustria paint demand is in%ed to user industries i%e auto,
engineering and consumer durabes*
Barriers to entry @rand, distribution net$or%, $or%ing capita efficienc) and tec!noog) pa) a
crucia roe*
Bargaining
power of
suppliers
Price increase constrained $it! t!e presence of t!e unorganised sector for
t!e decorative segment* Sop!isticated bu)ers of industria paints aso imit
t!e bargaining po$er of suppiers* +t is t!erefore t!at margins are better in t!e
decorative segment*
Bargaining
power of
customers
"ig! due to avaiabiit) of $ide c!oice*
Competition +n bot! categories, companies in t!e organised sector focus on brand
buiding* "ig!er pricing t!roug! product differentiation is aso foo$ed as a
competitive strateg)*
TOP
)inancial *ear $+,


5I13 $as a mi9ed bag for t!e paint companies* ?!ie a t!e 3 pa)ers vi8* Asian Paints,
&ansai Neroac and @erger Paints reported a strong gro$t! in saes, operating margins came
under severe pressure due to ra$ materia price infation* -op(ine gro$t! $as boosted b)
strong demand from t!e rura mar%ets* Nonet!eess, t!e demand environment in t!e industria
segment continues to remain c!aenging due to !a$%is! interest rate environment*


Performance on t!e margins $as impacted b) t!e rising prices of crude oi and titanium dio9ide
$!ic! increased t!e overa e9penditure, t!ereb) impacting profitabiit) gro$t!* "o$ever,
companies are underta%ing a gradua and caibrated price increase in order to s!ied margins*
Nonet!eess, as a compete pass on of ra$ materia price increase is not possibe in t!e
industria segment, t!e bended margins continue to suffer*


"o$ever, a good monsoon t!is )ear is e9pected to boost demand in t!e rura areas* A good
!arvest and festiva season demand can boost voumes in t!e second !af of 5I14*


A t!e %e) pa)ers are in an e9pansion p!ase* Asian PaintsK pant in &!andaa, #a!aras!tra
!as recent) got comissioned* &ansai NeroacKs capacit) e9pansion pans at :ainpur and @a$a
!as cuminated* @erger Paints !as aso underta%en capacit) e9pansion for its pants ocated in
And!ra Prades! 1AP2* 5urt!er, e9pansion of $ater based pant at Ris!ra and ;oa is aso on
trac%* As per estimates, paint capacities are e9pected to go up b) ,0(.0C in t!e coming 3 to ,
)ears*
TOP
Prospects


-!e mar%et for paints in +ndia is e9pected to gro$ at 1*, times to 2 times ;FP in t!e ne9t five
)ears* ?it! ;FP gro$t! e9pected to be bet$een ,(6C eves, t!e top t!ree pa)ers are i%e) to
coc% above industr) gro$t! rates in t!e future, considering t!e) !ave a strong brand and good
reac!*


Fecorative paints segment is e9pected to $itness !ig!er gro$t! going for$ard* -!e fisca
incentives given b) t!e government to t!e !ousing sector !ave immense) benefited t!e
!ousing sector* -!is $i benefit %e) pa)ers in t!e ong term*


At!oug! t!e demand for industria paints is u%e$arm it is e9pected to increase going for$ard*
-!is is on account of increasing investments in infrastructure* Fomestic and goba auto majors
!ave ong term pans for t!e +ndian mar%et, $!ic! augur $e for automotive paint
manufacturers i%e &ansai Neroac and Asian(PP;* +ncreased industria paint demand,
especia) po$der coatings and !ig! performance coatings $i aso prope topine gro$t! of
paint majors in t!e medium term*


+f t!e ne$ capacities do not get utii8ed $e, companies ma) face margin pressures in t!e near
term*
"hallenges
httpEFFwww.slideshare.netF#anne4e/alainenFpaint(industry(in(india(+,))
httpEFFwww.slideshare.netFsagar/eshriFthe(indian(paint(industry
Growth Drivers
httpEFFwww.indianmirror.comFindian(industriesF+,):Fpaint(+,):.html
-!e gro$t! in t!e +ndian Paint +ndustr) is driven b) emergence of t!e midde cass in +ndia,
gro$ing infrastructure, increase in t!e tendenc) to spend and gro$ing )oung popuation incined
to$ards avis! ifest)e* -!e sector is e9pected to post a 0A;R of around 16*2C during 2013(14
to 201,(16, according to a report* 2013 $as toug! for t!e +ndian Paint +ndustr)* "opes of a reviva
in demand after a good monsoon and during t!e festive season $ere das!ed b) !ig! infation* +t
!as been found t!at $!ie demand remained tepid in t!e +ndian cities, consumption $as rising in
rura areas* -!e rura mar%et !as gro$n at a rate of around 20 per cent a )ear 1in financia )ear
20132* -!e mar%et si8e of t!e paint industr) in +ndia is estimated at around Rs 2=,000 crore*
+ndustr) pa)ers e9pect cose to 12C gro$t! in business voume and 10(12C rise in turnover t!is
financia )ear* -!e rura opportunit) combined $it! easing prices of Rutie, a %e) ra$ materia,
promises 2014 to be a better )ear for +ndian paint industr)*
5uture outoo%
httpEFFarchive.indianexpress.comFnewsFindian(paint(industry(to(touch(rs(8,,,,(cr(mar/(by(
fy);(ipaF),;):,8F
The domestic paint industry is expected to touch Rs 50,000 crore mark in the next
three years on the back of rising urbanisation and economic revival, according to the
Indian Paint Association IPA!"
#Though the paint industry $itnessed some slo$do$n in the last fe$ years due to
global economic uncertainties and gro$ing urbanisation, $e expect a good gro$th
over the next three years" %e estimate the industry to touch around Rs &',5&5 crore
by ()*+,# IPA President Ramakanth Akula told reporters here"
In ()*,, the paint industry stood at Rs ,+,0&0 crore, out of $hich the decorative
segment contributed nearly -* per cent at Rs *.,&'0 crore, $hile the remaining Rs
-,550 crore $as contributed by the industrial segment"
In terms of volume, the industry stood at /"** million tonnes, of $hich decorative
segment accounted for nearly -- per cent share"
#%e expect the -00/0 trend of decorative and industrial segments to continue even in
future, mainly because of the gro$ing urbanisation and increase in disposable
income,# he said"
The IPA President expects to see considerable gro$th in the real estate sector in the
coming years, $hich $ill drive demand" #Also, $e expect the economy to rebound"
All this put together, $e feel the decorative segment $ill continue to dominate,# he
said"
In the industrial segment, the auto sector $ill continue to push demand, Akula
added"
%hen asked $hether the input costs $ill continue to be a cause of concern for the
industry, Asian Paints managing1 director 234 Anand said, #%e do not expect the
input prices to come do$n even though there are signs of crude oil prices stabilising"
3ut the concerns over rupee depreciation and inflation $ill continue to keep the
input costs high"#
The industry is also expecting increase in paint prices in the coming years, he said"
httpEFFwww.researchandmar/ets.comFreportsF+8+,+-;FindiaHpaintHindustryHoutloo/HtoH+,)B
Hrising
-!e report tited L+ndia Paints +ndustr) 6utoo% to 201. ( Rising >rbani8ation and Advent of
Bnvironment 5riend) PaintsM provides a compre!ensive ana)sis of t!e various aspects suc! as
mar%et si8e of t!e +ndia paints, decorative paints and industria paints mar%et as $e as
organi8ed and unorgani8ed segments* -!e report aso covers t!e revenues and mar%et s!ares of
major pa)ers in t!e decorative and industria paints segments*
-!e +ndia paint industr) !as been !uge) infuenced b) rising disposabe incomes and rising
urbani8ation over t!e )ears* +t registered revenues of >SF N miion in 5I'2012 $!ic! gre$ over
b) 12*,C from 5I'2011 figure of >SFN miion* -!e paint industr) of +ndia is mar%ed b) a
significant presence of unorgani8ed segment $!ic! determines NC of t!e revenues from t!e tota
saes of paints in +ndia* -!e paint industr) in +ndia !as gro$n at a 0A;R of 1=*0C from >SF N
miion in 5I'2006 to >SF N miion in 5I'2012*
-!e decorative paints mar%et is c!aracteri8ed b) a gamut of t!e paint products $!ic! differ in
terms of cost and 4uait)* -!e presence of unorgani8ed segment is primari) visibe in t!e
econom) products* -!e major organi8ed segment mar%et pa)ers incude Asian Paints, @erger
Paints, &ansai Neroac, A%8o Nobe +ndia, S!aimar Paints and :enson and Nic!oson* Asian
Paints !as been eading t!e mar%et over t!e )ears $it! a mar%et s!are of NC* -!e revenues of
@erger Paints increased noticeab) b) 2,*6C in 5I'2012, $!erein it coc%ed revenues of >SF N
miion*
&ansai Neroac !ad been t!e mar%et eader of t!e industria paints $it! a s!are of NC in 5I'2012*
Asian Paints, @erger Paints, A%8o Nobe comprise some of t!e ot!er eading companies* -!e
mar%et of industria paints is !ig!) tec!noogica) oriented $!ere t!e majorit) of pa)ers !ave
tec!nica coaborations $it! t!e foreign pa)ers* -!e revenue generation from t!e industria
paints is t!roug! arge projects, supp) of customi8ed products t!roug! coaborations or on a
contractua basis*
-!e gro$t! of t!e paint industr) in +ndia !as been consistent $it! t!e ;FP gro$t! rate over t!e
)ears* -!ere is a s!ift in t!e mar%et in terms of gro$ing stress upon t!e usage of environment
friend) paints* -!e companies !ave introduced various paints products $!ic! are eco friend)
and ess !armfu to t!e environment in recent )ears* -!e mar%et !as aso $itnessed info$ of a
gamut of innovative products $!ic! serve to t!e c!anging decor st)es and improving aest!etic
tastes of gro$ing urban popuation* -!e revenues from t!e paint industr) in +ndia are e9pected to
e9pand to >SF Nmiion in 5I'201., gro$ing $it! a 0A;R of NC from 5I'2012 to 5I'201.
Growth
httpEFFwww.prnewswire.co.inFnews(releasesFbooming(paint(industry(in(india(+-88:88C).html
The growth in the market is driven by emergence of the middle class in India, growing infrastructure,
increase in the tendency to spend and growing young population inclined towards lavish lifestyle. On the
back of such advocacy, it is anticipated that the sector will post a CAGR of around 16.2% during 2013-14 to
2015-16, according to our new research report, "Booming Paint Industry in India".
Our research is an outcome of extensive primary & secondary research spanning over 6 months and
thorough analysis of industry trends. For the study, we have conducted F2F and telephonic interviews with
industry experts such as members of Indian Paint Association and Paint manufacturers. In addition, we also
interviewed more than 200 paint dealers and consumers all over India to embrace various aspects of the
industry trends in the report.
The report segregates paint industry into two types - Decorative and Industrial paints. The decorative paint
market has been further segmented into emulsions, enamel, distemper and cement paints. Similarly, the
industrial paint market is also segmented into automotive coating, high performance coating, powder coating
and coil coating. Detailed historic and future perspective has been provided with all data forecasted till 2015-
16.
The various types of decorative paints have been further analyzed to understand the market size and future
potential of various sub-segments such as plastic emulsions, textured emulsions, synthetic enamels, acrylic
distempers, etc. The report also classifes decorative paint market by product class which includes premium
paints, mid-tier paints and economy paints. Presently, the growth of the Indian paint industry is being
witnessed from new demand pockets, especially in Tier-II and Tier-III cities, thus, signaling the growing
acceptance of quality products among the masses. Our analysts have closely studied and provided market
forecast till 2015-16 of all sub-segments and product class.
With the growth of paint industry, the market for raw material is also intensifying in India. A comprehensive
analysis and forecasting till 2015-16 of raw material market is also included mainly focusing on major
segments such as pigments, solvents, binders and additives.
We have also included the prominent industry players such as Asian Paints, Kansai Nerolac, Berger Paints,
and many others to provide a balanced research outlook of the industry. The section covers their business
overview, product portfolio, key fnancials, and industry activities.
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-!e +ndian paint industr) is e9pected to touc! t!e Rs ,0,000 crore mar% in t!e ne9t t!ree )ears
on t!e bac% of rising urbanisation and economic reviva, according to t!e +ndian Paint
Association 1+PA2* -!oug! t!e paint industr) $itnessed some so$do$n in t!e ast fe$ )ears due
to goba economic uncertainties, t!e industr) e9pects a good gro$t! over t!e ne9t t!ree )ears*
+t is estimated t!at t!e industr) $oud touc! around Rs 4=,,4, crore b) 5I16* +n 5I12, t!e paint
industr) stood at Rs 26,040 crore, out of $!ic! t!e decorative segment contributed near) .1 per
cent at Rs 1E,4=0 crore, $!ie t!e remaining Rs .,,,0 crore $as contributed b) t!e
industria segment* +n terms of voume, t!e industr) stood at 3*11 miion tonnes, of $!ic!
decorative segment accounted for near) .. per cent s!are*
-!e +ndian Paint industr) !as ac!ieved gro$t! of around 1,C(16C per cent per )ear in t!e past
five )ears, $!ic! is 1*, times +ndiaKs ;ross Fomestic Product gro$t!* -!e +ndian Paint industr)
is broad) divided into t$o sectors J organi8ed and unorgani8ed $!ic! contribute around 6,C
and 3,C of revenues respective)* +t is primari) segmented into t$o categories J decorative
paints and industria paints $!ic! account for .2C and 2EC of revenues respective)*
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-!e +ndian Paint industr), estimated to be a Rs*21,000 0r* industr), !as been gro$ing at a rate of
above 1,C for t!e past fe$ )ears* -!e organi8ed pa)ers of t!e industr) cater to about 6,C of
t!e overa demand, $!ereas t!e unorgani8ed pa)ers ta%e care of t!e remaining 3,C, in vaue
terms* -!e unorgani8ed pa)ers main) dominate t!e distemper segment*
-!e industr) consists of t$o segments, name)
* Fecorative segment ( $!ic! caters to t!e !ousing sector and
* +ndustria segment ( consists of po$der coatings, foor coatings and ot!er protective coatings
catering to t!e automobie, marine and ot!er industries* +n t!e domestic mar%et, Fecorative
segment accounts for .0C of t!e tota demand for paints $!ereas t!e industria segment
accounts for t!e remaining 30C*
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