The share of industrial paints in the total paint consumption is very low when compared to global standards.
It accounts for 25% of the paint market with 75% of the
paints sold in India for decorative purposes.
In most developed countries, the ratio of decorative
paints vis-à-vis industrial paints is approximately
50:50. But, with the decorative segment bottoming out,
companies are increasingly focusing on industrial
paints. The future for industrial paints is bright. In the
next few years its share will go up gradually in line
with the global trend.
Currently all key players in the Indian paint market
are in expansion mode. Asian Paints has enhanced its
capacity at its facility in Himachal Pradesh (for powder
coatings) and Maharashtra (industrial coatings) and
Berger’s facility in Jammu started contributing to its
top line performance, albeit on the lower side. Kansai
Nerolac is putting up a green field plant at Hosur in
Tamil Nadu and is carrying out expansion at its Lote
Parshuram and Bawal plants.
CURRENT TRENDS
The Indian paint and coatings industry was riding high on
the growth in the Indian automobile industry, new construction in the housing segment and improving infrastructure throughout the country. But the recent global
slow down impacted the paint industry to some extent as a
result of slowdown in real estate and auto industry. Top-line
growth is affected to some extent while the bottom-line is
certainly under pressure.
Consumers are looking forward to new product launches
some for application in special areas. Companies are increasing the value-added services available to customers by offering
a variety of finishes through specialized and trained applicators, well supported by back end support of specialized service.
There has been a higher growth of emulsion paints for
interiors vis-à-vis distempers. There is increasing use of
economy emulsion in place of lower-priced distempers.
Similar is the trend for exteriors where emulsion-based coatings are now preferred against conventional cement-based
coatings. Continuously looking for better products, more and
more consumers are switching to marginally higher-priced
emulsions where they get more durable and better-looking
finishes in a wider range of colors.
In spite of economic slowdown, the Indian paint industry is
growing though at a slower rate. It has tremendous potential
for growth in the coming years. The decorative segment has
out paced the industrial segment in growth rate but the industrial segment has the greater potential for growth, as and
when the automobile industry business improves.
The players with aggressive marketing strategies and
comprehensive product portfolios will grow at a faster rate.
The emerging trends in technology and marketing indicate
that the industry is likely to consolidate in the coming years
with industry leaders improving their market share. CW
