• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Pigments Market

    The Architectural Paint Market Enjoys a Strong 2022

    The Buyers’ Guide

    Auto Refinish Market

    The 2022 Protective Additives Directory
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    PPG Achieves ISO 14001 Certification of Environmental Management System

    AmCoat’s Rhino Shield and Floor Shield Break Records in 2022

    Automotive Industry Leaders Form Cofinity-X JV

    EPS Launches New Acrylic DIrect-to-Metal Polymer

    Evonik, Partners Launch PlasCO₂ Project for C4 Chemicals Production
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Achieves ISO 14001 Certification of Environmental Management System

    POLYDURE Coatings Help Customers Keep Their Cool

    PPG Global Leaders Transform Boys & Girls Club in Florida with COLORFUL COMMUNITIES Project

    Epoxytec Announces New Website Launch

    Advanced Polymer Coatings Lands Multiple Turkish Tanker Deals
    Additives
    Binders
    Pigments
    Solvents

    EPS Launches New Acrylic DIrect-to-Metal Polymer

    Evonik, Partners Launch PlasCO₂ Project for C4 Chemicals Production

    Dr. Ranjini Murthy to Join Azelis Americas as SVP of Commercial and Digital Excellence

    Univar Solutions Announces New Distribution Relationship

    OQ Chemicals Invests in Capacity Expansion to Support Carboxylic Acids Market
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Shepherd Color Company, The

    Active Minerals

    Clariant Additives

    Arkema

    Pilot Chemical Company
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Saudi Arabia Coatings Show

    Southern Society for Coatings Technology Annual Meeting and Technology Conference

    Eastern Coatings Show

    CPCA Annual Conference

    66th Annual Sink or Swim
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Shepherd Color Company, The

    Active Minerals

    Clariant Additives

    Arkema

    Pilot Chemical Company
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    India/Asia Pacific Reports

    Indian Paint Industry - Gaining Steam

    ...

     Indian Paint Industry - Gaining Steam
    Related CONTENT
    • Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates
    • KRAHN Chemie Expands Distribution Agreement with Ecoat
    • Sales of Paint Cans Facing Challenge from Growing Convenience & Popularity of Plastic Pails
    • BCF CEO Blog: Further Consolidation in the UK Coatings Industry
    • Overview of Iranian Paint and Coatings Industry
    Yogender Singh, India, Asia-Pacific Correspondent11.06.17
    India has some of the best ingredients for the development of the paint and coatings industry. With 66 percent of its population under the age of 35, India is home to the largest population of young people in the world – 825 million. The median age of the country is just 27 years, much below 37 in the U.S. and 46 in Japan. India’s demographic profile is changing in a way that is quite favorable to the growth of the paint and coatings industry. Though, currently the per capita consumption is very low, rising urbanization, disposable income and nuclear families are expected to propel a very healthy growth for the paint industry for a number of years to come.

    Coatings World presents an overview of Indian paint industry in this article.

    Overview of Indian Paint Industry

    After steady growth for a number of years, the Indian paint industry witnessed one of the worst years in the concluded financial year 2016-17. Growth picked up pace during the second quarter of the last fiscal, owing to a good monsoon and positive investment climate in the country. However, a couple of regulatory measures undertaken by the government impacted the paint industry in both the third and fourth quarter of FY 2016-17. The slowdown continued in the first and second quarter of current financial year (April 2017-September 2017) due to the implementation of GST from July 1, 2017.

    The lackluster performance of the paint industry in the last fiscal can be largely attributed to demonetization exercises carried out by the Indian government in November 2016. The Federal Government’s decision to demonetize almost 86 percent of the currency notes in circulation caused a severe cash shortage in the domestic economy, which prefers cash as the mode of payments, even today. This cash shortage led to a strain on the paint consumption demand and operations of paint producers for a greater part of the second half of the last financial year.

    During 2015-16, the overall production of paints in India was estimated (estimated because unorganized sector producers do not disclose the right numbers) to be 4.25 million tones, registering a five percent growth over the previous year. In value terms, the paint industry grew by about 8 percent to INR 43.5 billion of which the decorative paints share was 74 percent and the balance being industrial. The industry had grown at a CAGR of 12.9 percent from 2011-12 to 2014-15 in terms of value.

    The per capita consumption of paints in India, at 3.23 kgs, is much lower in comparison to some of the other developed economies around the world. However, current low per capita consumption is viewed by domestic paint producers as immense future growth opportunity for the paint industry.

    Repainting constitutes about 70 percent of the total paint demand in the country. The shortening of the repainting cycle from 6-8 years earlier to 3-4 years is driving the demand for decorative paints. The retail demand for paints is higher during the months preceding major festivals such as Diwali, Pongal/Makar Sankranti, Onam and Christmas as most of the repainting is done around this period. Demand of industrial paints too, gains with the festival demand push for automobiles, houses and white goods. Since, most of major festivals of the country fall in the second half of a fiscal, the major demand period for decorative paints and, to some extent,
    industrial paints is between September and March.

    Stakeholder Take

    According to Asian Paint’s management, “April to June has been a challenging quarter for our company both in the domestic as well as international front. The quarter started on a positive note continuing from the last quarter of FY2017; however, the domestic business was affected in the month of June in the run-up to the GST implementation from July 1, 2017. The company witnessed de-stocking by the trade as a result of which sales were affected to a fair extent.”

    According to Jayakumar Krishnaswamy, managing director, AkzoNobel India, “Indian coating market is poised to grow due to a low per capita consumption of paint and a large number of first-time users. We are confident of our growth and we have taken steps to grow ahead of the market so as to gain market share. All of our businesses have reflected positive growth in the past in spite of the challenging environment.”

    Upcoming Expansions by Major Players

    Most of the major players are in the midst of expanding their installed capacities in order to tackle the rising demand in coming years. Here is a brief snapshot of these exercises.

    Asian Paints

    India’s largest paint producer, Asian Paints will be investing about INR 10 billion ( $153 million) towards  two new paint manufacturing facilities being setup at Mysuru and Vizag in the Southern part of the country.  The first phase of both the plants is expected to be commissioned in FY 2018-2019.

    Berger Paints

    Berger Paints has recently entered into two MOUs – one with Promat International Limited NV of Belgium for cooperation in the field of passive fire protective coatings, in India and neighboring countries, and the other with Chugoku Marine Paints Limited of Japan for co-operation and collaboration in the field of marine and related industrial paints in India.

    The demonetization exercise, carried out by Indian government in last November resulted in lower growth rates and contraction in demand for a period of four months, particularly in the rural markets and impacted the paint industry in an adverse manner.

    Kansai Nerolac

    Kansai Nerolac Paints Limited , a subsidiary of Japanese Kansai Paint Co. Ltd is the market leader in the industrial paints sub-segment. The company operates four manufacturing facilities at Lote in Maharashtra, Bawal in Haryana, Jainpur in UP and Hosur in Tamil Nadu. To boost the production capability, KNPL is creating new production facilities at Saykha in Gujarat, Amritsar in Punjab and Vishakhapatnam in Andhra Pradesh.

    AkzoNobel

    In December 2016, AkzoNobel India commissioned a specialty coatings production facility in Noida that can manufacture 600 kiloliters of coatings annually, with an investment of INR 30 million. In the same month, it also bought BASF India’s industrial coating business. The company is setting up a facility in Mumbai to serve its customers in the Northern and Western parts of India. AkzoNobel India has six manufacturing facilities in Bengaluru, Hyderabad, Mohali, Gwalior, Raigad and Navi Mumbai.

    Impact of Goods & Service Tax ( GST) on Paint Industry

    The Indian government implemented Goods & Service Tax ( GST) from  July 1, 2017. The new tax regime has replaced multiple indirect taxes and state levies. In the short term GST implementation could be disruptive as paint producers are  reorganizing their business processes to adapt to the new environment.

    Speaking to CW, Subhash Arora, a major distributor of paints in New Delhi said,  “Volumes fell 25-30 percent in June 2017 over May 2017, the sharpest drop this year. Some dealers in Delhi have observed decline in sales of as much as 50 percent of the monthly average in July.”

    However, most of the executives Coatings World spoke to were optimistic about long term benefits of GST in the medium term. Paint producers would have to incur less on  logistics infrastructure, as instead of number of  warehouses, paint producers can do with regional warehouses, which, in turn, would lead to cost optimisation.

    For example AkzoNobel currently has approximately 77 warehouses across the country. According to a key executive of the company, who spoke on the condition of anonymity, “ The number of warehouses may go down by 15-20 percent, but the actual reduction would depend upon a optimal model that would ensure just in time supplies.”

    Healthy Projections

    Despite, the current low per capita consumption, the Indian paint and coatings industry holds a great promise for the domestic and international paint producers in the country. Increasing urbanization (only 32 percent of the population live in cities according to last official census), rising disposable incomes in the hands of a vast section of population, growing popularity of value added paints in rural areas and a number of ambitious schemes of infrastructure development by central and state governments augur well for paint industry in the country.

    According to a study conducted by market research firm, Nielsen Corporation in association with the Indian Paint Association, “The Indian paint market is expected to reach INR 708.7 billion ($10.90 billion) by financial year 2019-20 (April 2019- March 2020) from approximately INR 403 billion ( $6.2 billion) in 2014-15. The decorative paint market is expected to witness CAGR of 12.7 percent and the industrial paint market CAGR of 9.5 percent, according to the report. 
    Related Searches
    • fire
    • paints
    • industrial
    • coatings
    Suggested For You
    Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates
    KRAHN Chemie Expands Distribution Agreement with Ecoat KRAHN Chemie Expands Distribution Agreement with Ecoat
    Sales of Paint Cans Facing Challenge from Growing Convenience & Popularity of Plastic Pails Sales of Paint Cans Facing Challenge from Growing Convenience & Popularity of Plastic Pails
    BCF CEO Blog: Further Consolidation in the UK Coatings Industry BCF CEO Blog: Further Consolidation in the UK Coatings Industry
    Overview of Iranian Paint and Coatings Industry Overview of Iranian Paint and Coatings Industry
    2021 CEO Forum 2021 CEO Forum
    KRAHN Chemie Distributes Eco-friendly Binders from Ecoat in Poland KRAHN Chemie Distributes Eco-friendly Binders from Ecoat in Poland
    BCF Technical Director Awarded UK Coatings Industry’s Highest Honor BCF Technical Director Awarded UK Coatings Industry’s Highest Honor
    MNYCA Hosting Sustainability Webinar MNYCA Hosting Sustainability Webinar
    European Coatings Show Rescheduled for September 2021 European Coatings Show Rescheduled for September 2021
    Coatings World Welcomes India Correspondent Coatings World Welcomes India Correspondent
    AkzoNobel Converts to Green Energy for Netherlands Paint Production AkzoNobel Converts to Green Energy for Netherlands Paint Production
    AkzoNobel Announces Heart Wood as 2018 Color of the Year AkzoNobel Announces Heart Wood as 2018 Color of the Year
    67. Tohpe 67. Tohpe
    54. Yasar 54. Yasar

    Related Breaking News

    • Breaking News
      Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates

      Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates

      New 2022 shows and conferences for the Asia-Pacific Region and Middle East will be held in Indonesia and the United Arab Emirates.
      09.20.21

    • Binders | Breaking News | Distributor News
      KRAHN Chemie Expands Distribution Agreement with Ecoat

      KRAHN Chemie Expands Distribution Agreement with Ecoat

      Will sell Ecoat’s eco-friendly binders in Czech Republic, Slovakia, Hungary and Romania.
      08.03.21

    • Breaking News | Market Reports
      Sales of Paint Cans Facing Challenge from Growing Convenience & Popularity of Plastic Pails

      Sales of Paint Cans Facing Challenge from Growing Convenience & Popularity of Plastic Pails

      Sales of paint cans facing challenge from growing convenience and popularity of plastic pails: FMI Study.
      07.28.21


    • Breaking News | Paint & Coatings Manufacturer News
      BCF CEO Blog: Further Consolidation in the UK Coatings Industry

      BCF CEO Blog: Further Consolidation in the UK Coatings Industry

      U-POL was the latest, and by far largest remaining UK owned paint company.
      Tom Bowtell, British Coatings Federation CEO 07.26.21

    • Overview of Iranian Paint and Coatings Industry

      Overview of Iranian Paint and Coatings Industry

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 04.13.21

    Loading, Please Wait..
    Trending
    • PPG Global Leaders Transform Boys & Girls Club In Florida With COLORFUL COMMUNITIES Project
    • Sherwin-Williams Announces And Celebrates 2022 Vendor Of The Year Award Winners
    • Minwax Brand Announces Gentle Olive As Its 2022 Color Of The Year
    • PPG Names New Packaging Coatings Global Technical Director
    • Axalta Releases Fourth Quarter And Full Year 2022 Results
    Breaking News
    • PPG Achieves ISO 14001 Certification of Environmental Management System
    • AmCoat’s Rhino Shield and Floor Shield Break Records in 2022
    • Automotive Industry Leaders Form Cofinity-X JV
    • EPS Launches New Acrylic DIrect-to-Metal Polymer
    • Evonik, Partners Launch PlasCO₂ Project for C4 Chemicals Production
    View Breaking News >
    CURRENT ISSUE

    January 2023

    • Pigments Market
    • The Architectural Paint Market Enjoys a Strong 2022
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    BAPP Paper Reviews Common Adulteration Practices Which Go Undetected
    CRN Announces Promotions and Welcomes New Staff Member
    Quercetin Ingredient Linked to Improved COVID-19 Recovery: Study
    Coatings World

    Latest Breaking News From Coatings World

    PPG Achieves ISO 14001 Certification of Environmental Management System
    AmCoat’s Rhino Shield and Floor Shield Break Records in 2022
    Automotive Industry Leaders Form Cofinity-X JV
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    The Producto Group Appoints Mark C. Rauenzahn as Chief Executive Officer
    Coloplast Launches New Catheter in the U.S.
    Josh Ghaim and Sachin Jain Join Cue Health Board of Directors
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Jones Healthcare Group Installs BOBST NOVACUT 106 ER Flatbed Die-Cutter
    Pfizer Revenues Soar to Record-Breaking $100B in 2022
    iuvo BioScience Appoints Industry Exec to Lead Lab Biz
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    La Roche-Posay Named the Fastest Growing Skincare Brand of 2022 by NielsenIQ
    Disney Collaborates with Nailtopia on Limited-Edition Nail Collection
    Knoll Wins PCD Innovation Award for MAC Advent Calendar
    Happi

    Latest Breaking News From Happi

    Color Street Launches ‘Through the Cosmos’ Collection
    Curl Care Collection is New at Native
    Color Street Pledges $100K To Support Military & Veteran Appreciation
    Ink World

    Latest Breaking News From Ink World

    International Paper Reports Full-Year, 4Q 2022 Results
    UFlex Exhibits Sustainable Printing, Packaging Solutions at Plast India 2023
    Early-Bird Registration Opens for Print UV 2023
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    SABIC announces value chain partnerships
    Digital Embellishment Alliance launches new website community
    FLAG achieves record membership in 2022
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Superior Felt & Filtration Adds Domestic Injection Molding to its Medical Filtration Capabilities
    Ahlstrom Launches New Generation FluoroFree Technology
    Berry to Begin Production at India Healthcare Hub Early This Year
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Mobi-C Cervical Disc Replacement Procedures Top 200,000
    OPUM, Corflex Global Partner on Knee Assessment Technology
    ODT's Most-Read Stories This Week—Jan. 28
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Johan Hjertonsson Proposed as New Chairman of ASSA ABLOY
    Durak Highlights SilverPro Conductive Threads
    Arkema Partners with Research Institute to Open Lab in Mulhouse, France

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login