Published on March 10, 2014

The industrial paint market has been sluggish as most segments have experienced slowdown due to the overall economic environment in the country.

Market players say that decorative paint market in India is growing at a healthy rate over the past few years, while Industrial paint segment continued to be impacted by slow-moving manufacturing background in the economy, with no major activity. The industrial coatings business has been impacted by slowdown and higher raw material cost.

Indian paint makers continued to be affected by political events and macroeconomic uncertainty. The plunge of the Indian government on building up infrastructure helps the industry to grow economically. As per the report, all major companies are anticipated to expand their market in developing countries. And they are looking for mergers and alliances with regional and small organization for remarkable escalation.

Oil prices and rupee depreciation have impacted profitability of Paint market this year. As per report, Industry players are not expecting any significant change in the situation this fiscal till a new government is in place and policies become clearer and predictable. Overall the paint market tends to grow at 2-3 times GDP which is likely to be maintained.

As per analyst forecast, demand for green-based chemicals continues to rise, and global demand for paint and coatings through 2015 will continue to come mainly from architectural markets. Strong recovery in the construction sector and growth in residential building spending, will fuel demand for architectural paint and furniture coatings. For the next fiscal industry analysts are optimistic for achieving growth in the paint sector.