Published on December 30, 2013

With the year ending all the major sectors are reviewing their sales and production for the current year and predicting the futuristic trends. Paint industry had been slumbering under economic slowdown from last two years. In the year 2013, the industry expected to revive back due to favorable monsoon and festive season. But the scenario remained unchanged due to continual hike in inflation rates.

The industry has hiked the prices by about 7-9% during this financial year while the latest inflation would reduced the demand in the market, on the other hand, importing raw materials at the higher prices may force the companies to hike the price which is hampering the demand in the market. The urban demand has also slowed down people are choosing not to invest for painting and repainting needs as it is part of the discretionary spends.

The paint market is hoping for 12%volume growth this fiscal year after considering the current inflation rate. To maintain this level industry is not being taken new projects in advance and to increase the sales volume they offered low-end products with special coating features.

In this critical time the relief is coming from china only. Most companies are importing raw material, rutile from China only as it is $500per tonne cheaper than European rutiles.