Published on January 20, 2014

The Indian Paint Industry, estimated to be a Rs. 30000 crore industry, the organized players of the industry cater about 65 percent of the overall demand, whereas the unorganized players take care of remaining 35 percent.

Indian Paint industry consists of two segments, mainly- Decorative segment and Industrial segment. Decorative segment caters to the housing sector and Industrial segment consists of coating to automobile, marine and other industry. In the domestic market Decorative and Industrial segments accounts for 70 and 30 percent of total demand respectively.

The coatings industry is a highly raw-material intensive industry accounting for over 65% of manufacturing costs. Research & developments are being made by coating manufacturers to enhance the performance of coating products to boost the paint market in India. Domestic automotive consumption is expected to keep at a CAGR of 10 percent till 2017 due to higher purchasing power of common Indian buyers. Growth of new as well as used car market in the country has given Indian automotive coatings market a significant growth.

Market analysts said that total automotive coatings production is estimated to reach 135 Kilo ton in 2017 with the annual growth of around 15%. A major contributor to Indian Paint market Shalimar Paints is planning a strategic move to get into higher position than its existing 5th position in the Indian paint market.

As per report second half of this financial year is expected to be even better with high growth in profitability, against a slight downward movement in first quarter.