Published on December 2, 2013

Major players of this industry have shown some good growth in September Quarter. This has happened due to double digit growth (12-13%) and strong gross margin expansion (up 67-287 basis points). Decorative paints segment has shown very good growth in this period. However, industrial paints segment didn’t show that much growth due to weak demand from industrial productivity and low automobile sales.

Paint industry has gained some growth in this quarter. The reason for this has been the funds provided by the government for infrastructure and technologies. In the coming months demand from both industrial as well as decorative sector is set to rise, which shows good opportunity for the growth of this industry. One Trillion Dollar investment in this industry will be a huge opportunity for this industry to grow. Domestic players of this industry have shown impressive growth along with international players but there are so many things to do to meet customer demands. Automotive sector has major contribution in Indian economic growth, wherein Paint & Coating industry plays a crucial role to meet the need of this sector. Industry experts believe that present scenario is creating wonderful opportunity to the Indian Paint Industry to adapt to the aspirations of the buyer in terms of cost and technology to meet the future challenges.

In a survey done to find out the lead content in the wall paints tested out with horrifying results, the test confirmed that some of the cans had the lead content more than 100 times than the allotted safe standard. This raises questions on the health of people and on the credibility and safety standard of the company making these paints. The rupee fluctuations still haunt this industry, as it badly affected the paints industry. The rupee has gained a bit, but the uncertainty in the industry is still there, though with Diwali the sector got a boost. The industrial sector and decorative sector both have seen growth in the past month.