Published on December 16, 2013
The paint industry in India has been affected by overpricing of chemicals in the international market. Paints are segregated into two segments: Decorative paints and industrial paints. India’s decorative market is expected to grow at a CAGR of more than 15% during 2012-2015.
Decorative segment in India is growing at a positive rate and is expected to accelerate its growth in coming few years. The paint industry has been playing very vital role in the Indian growth trajectory.
Increase in the income of end-users in the past few years has ushered the growth of decorative segment. To add to the volume is increasing awareness in the rural sector. Usage of decorative paints has increased by leaps and bounds in the tier II and tier III cities. Moreover the increasing marketing strategies and huge investment in advertisements has created more awareness. Since this industry is raw material intensive, any fluctuation in chemical prices has got direct impact on the company’s margins. In last few months the depreciating Indian currency has add to their misery. But in last few weeks the currency has improved and shown stability against dollar.
In a recent development AkzoNobel has agreed to sale the 67 of its 72 German paint stores to wholesale distributors. As per transactions, all the related assets and staff will be transferred to the new owners. Left over five stores, out of this 3 will be closed and the other two to be finalized by the end of the month.
