Published on June 23, 2014

The industry has been performing well since last quarter. With formation of new government, new policies and new strategies of governance to rebuild the economy are closely watched by the industry players. The industry is in elated mood and has got very high expectations from the new government.  Recently central government announced its ambitious plan to create 100 smart cities across India. The cities will be equipped with best of its facilities in terms of transportation, rail networks, health, education and other aspects of need and luxury. With installation and implementation of these facilities, demand for coating industry is likely to increase thus providing incredible opportunity to the paint makers.        

In the span of two months the leading paint manufacturers of our country, Asian paints and Berger paints have increased their prices twice due to hardening of raw material prices. Rise in the raw material was majorly credited to oil crisis and depreciation of Indian currency in last few weeks. Major hikes were witnessed in the prices of aromatic products like Toluene, Mixed Xylene and N Hexane and many more. These are basically used as thinners in paint industry and are the direct products of crude oil. Crisis in Iran has led to ablaze in the prices of crude which in turn had cumulative impact on the aromatic compounds.

The industry at present is quite optimistic for its coatings product. This category has been affirmative with profit margins in past few quarters. It has got wide application in the automobile industry.

Leading Indian Paint Company, Asian paints is in process of acquiring companies abroad. They are targeting domestic leader in paint sector in countries like Mauritius and Ethiopia. According to officials the company is waiting for regulatory approvals. Further, company is focusing on increasing the capacity of its existing plants in different countries.

Paint industry has been facing all together tough time in domestic market due to slowdown of economy, stagnancy in the infrastructure sector and inflationary impacts. Industry has adopted wait and watch stance and has close look on the new government policies and its application.