Published on October 10, 2013

Over the past few years, Indian paint industry has witnessed a substantial growth and attention of many international players. The growth of this industry in India has been in two digits for the last few years. Growth and development in infrastructure, improvement in the tendency to spend and more inclination towards urban life has been the key points for this upheaval.

Paint industry is a major contributor to GDP of Indian economy. The industry in 2011-12 was valued around Rs.26000 crore. To be brief in the category, the industry is segregated in two types-Decorative paints and Industrial paints. The decorative paint market has been further classified into emulsions distemper, enamels and cement paints.  On the same way, the industrial paint market is also segmented into various categories. These are automotive coating, high performance coating, powder coating and coil coating. As mentioned earlier about the demand in urban sector but rural areas too have contributed in the demand for paints. Let’s have a look over the region wise consumption of paints across the country:

The highest consumption has been in Western region India i.e. 32%. Rural sector itself accounts for 40% of sales in the industry.

This industry too has its own set of issues. This industry is mostly affected by the volatility in the raw material prices. Experts from the industry say that they need to immune themselves with this volatility. Manufacturing of paints require more than 300 ingredients. Key ingredients for this are Titanium dioxide and oil derivatives. Increasing prices of Titanium dioxide and the soaring crude oil prices has affected to a great extent. Industry is compelled to lose their margins. Furthermore the brink the Rupee has faced was an addition to the agony. The industry is again facing the cut throat competition from Chinese market and new entrants from the other countries as well. All these are prevailing and are giving tough competition to the Indian paint industry.

When we study the current scenario for paint industry, the pace is steady and slow. The industry expects to roll back as festive season is approaching. Industries related to consumer goods and paints are always excited for festive season in India. Moreover this season experiences huge sales and very good margins for retailers. So this excitement will surely increase the demand for paints in both the areas i.e. rural and urban. The industrial sector is also looking positive as paint demand in automotive sector will increase.

Now the industry has prepared itself to face the upcoming challenges and has come with several ideas to cope up this situation. They are offering now value added services to their products like consultancy, home painting experience and exclusive stores to catch a grip on the market. Experts do believe that upcoming scenario will be positive and will bring bright future for this sector.