IRL has launched a new edition of its
single country report, “A Profile of the
Indian Paint Industry.” In this study, IRL
examines India’s paints and coatings
market independently and not as part of
a regional study on the Asia Pacific paint
market, thereby presenting more in-depth
information on paint market influences
and trends. This fully updated edition
provides market data for 2013 and forecasts for 2018.
India is Asia’s second-largest paint
market after China, with consumption
of more than 2,770,000 tons in 2013.
In the past decade, the growth in paint
consumption has been remarkably high,
achieving double-digit rates for many
years. At times, the demand for paints
and coatings has grown at a rate of 1.5
to two times higher than GDP growth. In
2012-2013, the paints and coatings industry witnessed a slowdown. Economic
growth in the country failed to achieve
the rates encountered in previous years
and the rupee depreciated, putting off
many investors.
After the elections, consumer confidence improved and, by early 2014,
the paints and coatings industry was
performing somewhat better, showing
the first signs of recovery. In particular,
the rural market was estimated to have
grown by as much as 20 percent in 2014,
as rising prosperity among consumers
stimulated the replacement of enamels
and whitewashes with emulsion paints in
the decorative segment.
The decorative and architectural
paints segment is expected to show good
growth rates going forward; the housing
sector is benefitting from government in-
centives and the increasing urbanization
trend will trigger a need for new hous-
ing stock. The demand for industrial
coatings is also predicted to grow, but at
slower rates; the future looks promising
for increasing investments in the coun-
try’s infrastructure, boosting demand for
protective coatings, while the automotive
industry is also expected to bounce back
from recent problems, particularly as
export markets recover. Rising prosper-
ity among the population will also bring
about a greater demand for cars and con-
sumer goods.
The peculiarity of the Indian paint in-
dustry is that a two-tier system is in place.
On one side, there are a handful of large
companies that dominate the market
and belong to the so-called “organized”
(large-scale) sector. Companies that be-
long in this category include Indian firms
Asian Paints, Kansai Nerolac, AkzoNobel
India, Berger and Shalimar Paints, plus
multinationals such as Axalta, Nippon
Paint, BASF Coatings and Jotun. In the
small-scale “unorganized” sector, there
are suggestions that there could be as
many as 2,000 producers. Paint produc-
ers in the organized sector are active
across the nation and tend to have manu-
facturing facilities in multiple locations;
unsurprisingly, the smaller players only
serve the immediate region where they
are located and lack advanced technical
capabilities. The unorganized sector tends
to deal with low-value products and may
represent as much as 35 percent of the to-
tal paints and coatings market.
Per capita consumption of coatings
remains very low in India at just 2.2 kg
per head in 2013; this indicates that there
remains an enormous potential for in-
creased demand as the country develops.
Indeed all the major paint manufacturers
are undergoing or have recently under-
gone expansions, and/or are opening new
plants. This shows that they remain opti-
mistic about the future of the market, and
see further growth opportunities, despite
recent difficulties.
“A Profile of the Indian Paint Industry”
gives an insight into the market changes
in the past few years, as well as outlining
the key trends affecting nine mainstream
paints and coatings segments: architec-tural/decorative, industrial wood coatings, protective coatings, marine coatings,
automotive OEM coatings, automotive
refinishes, powder coatings, general industrial coatings (including coil coatings)
and plastic coatings. Forecasts on these
are presented for the year 2018 alongside
market data for 2013. The cost of the full
report is €2,900.
World Demand for Dyes &
Organic Pigments to Reach
$19.5 Billion
World demand for dyes and organic pigments is expected to grow six percent
per year to $19.5 billion in 2019. Rising
consumer spending will drive increased
IRL Releases Profile of Indian Paint Industry
