• 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
    Coatings World Company Profile: Siltech Corp.

    Coatings World Interviews Axalta CEO Robert Bryant

    Resins Update

    Building a Sustainable Future

    Paint for Commercial Vehicles Goes Greener
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Nippon Paint Marine's Biocide-free AQUATERRAS Wins Green Technology Award

    Arkema Starting Up New Bio-based Polyamide 11 Plant in Singapore

    PPG Supplies Rex Airlines with Coatings for Aircraft Livery Repaint

    Axalta's Transportation Coatings Business Rebranded as Axalta Mobility Coatings

    Keim-additec Hires Tyler John as Technical Sales Manager
    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

    Nippon Paint Marine's Biocide-free AQUATERRAS Wins Green Technology Award

    PPG Supplies Rex Airlines with Coatings for Aircraft Livery Repaint

    Axalta Mobility

    Axalta's Transportation Coatings Business Rebranded as Axalta Mobility Coatings

    Sherwin-Williams Launches Echelon
    Additives
    Binders
    Pigments
    Solvents

    Arkema Starting Up New Bio-based Polyamide 11 Plant in Singapore

    BYK: New Dimension in High Throughput Screening

    Stahl Launches NuVera

    Jebsen & Jessen, Innospec Sign Distribution Agreement

    SONGWON, Chemo International Inc. Announce Distribution Partnership
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    Siltech Corporation

    Shepherd Color Company, The

    Clariant Additives

    Eagle Specialty Products
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    11th Asia Pacific Floor Fair and Guangzhou Paint & Coatings Fair

    Coatings for Africa

    Coatings Expo Vietnam 2020
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Keim Additec Surface USA LLC

    Shepherd Color Company, The

    Clariant Additives

    Eagle Specialty Products

    Siltech Corporation
    • 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
    • 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

    Raw Material Issues In Indian Paint Industry

    ...

    Raw Material Issues In Indian Paint Industry
    Table 1: Cost of raw materials as percentage of sales revenue for top 4 Indian paints & coating producers
    Raw Material Issues In Indian Paint Industry
    Table 2: Prices of Rutile and Anatase in India
    Yogender Singh, India, Asia-Pacific Correspondent01.20.20
    Even under the best of circumstances, raw materials represent a near-constant headache for paint and coating producers. With Middle East Asia simmering with tensions and a global trade war growing more intense, volatile raw material prices have posed severe challenges for the Indian paint and coating industry throughout 2019 and promise to do so into the foreseeable future.

    Raw materials are perhaps the most important factor of production for every branch of the manufacturing industry. However, in the case of the paint and coating industry, raw materials play a far greater role due to the raw material intensive nature of the industry.

    Even a small fluctuation in the raw material prices has a major impact on the profitability and operations of paint producers.

    India, which is entirely dependent on the imports of crude oil and its derivatives, imports almost 90 percent of its raw material requirements for the paint and coating industry suffered heavily on the account of rising prices and uncertainty due to political reasons in the Middle East region. The price of crude oil and crude oil-linked derivatives, such as monomers and solvents, created pressure on Indian paint producers in the 2019. There was nearly a double-digit increase in raw material prices. The prices of rutile and TiO2 also increased significantly during the current year.

    Compared to the architectural business, industrial coating producers were severely hit by the sharp increase in raw material prices. Low demand growth in the industrial segment along with a huge increase in raw material prices hit the country’s industrial coating producers badly in the last 12 months.

    Though, in welcome news for the Indian paint industry, raw material prices have started to soften in the last few months. For example, in the second quarter of FY 2020 (July 2019-September 2019) for Asian Paints, the country’s largest producer of paint and coatings, raw material accounted for 57.6 percent of total sales. The figures for the corresponding period in the year 2018 was 60.1 percent.

    Speaking during the Asian Paints Earnings Conference Call in late October, CEO KBS Anand said, “Raw material prices have remained benign in the period July 2019-September 2019. However, we will need to watch out for volatility in key raw materials, especially crude and related derivatives.”

    Impact of crude oil prices

    Raw materials like phthalic anhydride, pentaerythritol, methyl methacrylate, aromatics, etc., which act as binders, solvents and additives, are derivatives of crude oil. In fact, nearly 50 percent of raw materials used by paint companies are crude oil derivatives and account for about 30-35 percent of the total raw material cost of the Indian paint industry. Volatile crude oil and derivative prices pose a risk to the profitability of Indian paint and coatings producers.

    There is a growing tendency among the Indian paint companies to incline towards manufacturing water-based paints which are less sensitive to movement in crude oil prices. Besides, the preference for these paints over solvent paints is also rising among customers because of ease to clean walls and increasing demand of these paints from the building and construction and automotive sector owing to their good corrosion protection and high gloss properties, over other types. This has led to focus by most of the paint companies to consistently increase the share of water-based paints in their portfolio which is expected to aid margin growth in the long term. However, demand for oil/solvent-based paints will always remain, hence exposure to price fluctuations in crude oil cannot be eliminated completely.

    Mukesh Goyal, chairman of Delhi region of Indian Small Scale Paints Association, and owner of Carlo Paints & Chemicals Pvt. Ltd told CW in a conversation, “Impact of a rise in raw material prices is very harsh for small and mid-scale paint producers.

    Smaller paint producers don’t have bargaining clout as of large scale paint producers, we have to face the brunt of a raw material price hike. Large paint producing companies always have an option of increasing their prices when raw material prices go up. But, for smaller producers it is very difficult to increase the prices as majority of our customers are based in small towns and rural areas, who are very price sensitive.”

    TiO2 issue

    Titanium dioxide pigment, forming around 25 percent of the total content of paint, is by far the most important material used by the paint industry due to its whiteness, opacity and refractive index ability i.e. its ability to bend and scatter light. It is commercially available in two forms – Anatase and Rutile. Of these two forms, Rutile TiO2 is more durable and stable and is also considered to be more efficient in scattering light; while anatase pigments are used mostly in cheap dispersion paints, self-cleaning paints and in road marking paints. Application of rutile pigments is much broader and in practice covers all paint types.

    Around 70 percent of the India’s domestic demand for TiO2 is met through import deliveries and China is the leading exporter of TiO2 to India. Steady growth of TiO2 production in China in 2018 and first half of 2019 kept the TiO2 prices in check. High volatility in Rupee in 2019 has made the imports costlier for Indian paint producers by a similar amount.

    However, domestic production (and prices) of TiO2 is expected to pose problems for Indian paint producers in coming years on account of ban on mining of beach minerals by Indian government. Beach minerals ilmenite and rutile are the basic feedstock for the manufacture of TiO2. Indian government’s ban in 2019 on mining of beach minerals by private companies has affected the whole chain of inter-related connected producer and user industries. It is expected that the real impact of this ban will have a major impact on TiO2 production in the coming year. 
    Related Searches
    • construction
    • china
    • led
    • dispersion

    Related India/Asia Pacific Reports

    • Overview of Iranian Paint and Coatings Industry

      Overview of Iranian Paint and Coatings Industry

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

    • Q&A with TPMA President Sarawut Rachanakul

      Q&A with TPMA President Sarawut Rachanakul

      Sarawut Rachanakul is the President of the Thailand Paint Manufacturers Association and CEO of JBP International Paint Company.
      Yogender Singh, India, Asia-Pacific Correspondent 02.12.21

    • Indian Industrial Coatings Market

      Indian Industrial Coatings Market

      Estimated to be approximately $1.9 billion, industrial paint accounts for 25 percent of total paint demand in India.
      Yogender Singh, India, Asia-Pacific Correspondent 12.07.20


    • The Paint and Coatings Industry  in Bangladesh

      The Paint and Coatings Industry in Bangladesh

      The nearly $471 million paint and coatings industry in Bangladesh has registered steady growth rates for the most of the last decade.
      Yogender Singh India, Asia-Pacific Correspondent 10.08.20

    • COVID’s Impact on the Indian Paint Industry

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 08.10.20

    • State of the Paint and Coatings Industry in Saudi Arabia

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 03.13.20


    • The Paints and Coatings Industry  in the Philippines

      The Paints and Coatings Industry in the Philippines

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 09.03.19

    • Expansions in India Paint & Coatings Industry

      Expansions in India Paint & Coatings Industry

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 07.03.19

    • A Snapshot of AkzoNobel Vietnam

      A Snapshot of AkzoNobel Vietnam

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 05.10.19


    • Q&A with Jatuphat Tangkaravakoon, CEO of Toa Paints Thailand

      Q&A with Jatuphat Tangkaravakoon, CEO of Toa Paints Thailand

      ...
      Yogender Singh , India, Asia-Pacific Correspondent 03.08.19

    • Paint and Coatings Industry in Vietnam

      Paint and Coatings Industry in Vietnam

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 01.07.19

    • Overview of Paint & Coatings Industry in Pakistan

      Overview of Paint & Coatings Industry in Pakistan

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 11.05.18


    • Indonesian Paint and Coatings Industry

      Indonesian Paint and Coatings Industry

      ...
      Yogender Singh, India, Asia-Pacific Correspondent 09.01.18

    • An Overview of Thailand’s  Paint & Coatings Market

      An Overview of Thailand’s Paint & Coatings Market

      ...
      Yogender Singh, India/Asia-Pacific Correspondent 07.03.18

    • Paint India 2018 – Show Report

      Paint India 2018 – Show Report

      Paint India offered a wealth of information on paint and coatings for this growing market.
      Yogender Singh, India/Asia-Pacific Correspondent 06.04.18

    Trending
    • Sherwin-Williams Launches Echelon
    • Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue For Coatings, Ink Sectors
    • Coatings World Interviews Robert Bryant, CEO Of Axalta
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • PPG Acquires Automotive Coatings Manufacturer Cetelon
    Breaking News
    • Nippon Paint Marine's Biocide-free AQUATERRAS Wins Green Technology Award
    • Arkema Starting Up New Bio-based Polyamide 11 Plant in Singapore
    • PPG Supplies Rex Airlines with Coatings for Aircraft Livery Repaint
    • Axalta's Transportation Coatings Business Rebranded as Axalta Mobility Coatings
    • Keim-additec Hires Tyler John as Technical Sales Manager
    View Breaking News >
    CURRENT ISSUE

    April 2021

    • Coatings World Company Profile: Siltech Corp.
    • UV-Curable Coatings
    • Coatings World Interviews Axalta CEO Robert Bryant
    • Resins Update
    • Building a Sustainable Future
    • Paint for Commercial Vehicles Goes Greener
    • 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

    Ashland Supports the Nature Conservancy Forest Restoration Effort to Help Plant a Billion Trees
    Martin Bauer Announces Installation of Agile Filling System at Bethlehem, PA Facility
    PepsiCo and Ingredion Begin Pilot Partnership with Soil and Water Outcomes Fund
    Coatings World

    Latest Breaking News From Coatings World

    AkzoNobel Shareholders Approve Final Dividend at Annual General Meeting
    Sustainable Plastics Will Make Up More Than 15% of Production by 2030
    Axalta Coating Systems Announces $625 Million Increase to Share Repurchase Program Authorization
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Getinge Receives FDA Clearance for Multiple Products
    Study Shows Benefits of CCHD Screening Using Masimo SET Pulse Oximetry
    TEAM Technologies Acquires ViruDefense
    Contract Pharma

    Latest Breaking News From Contract Pharma

    RDIF, Minapharm to Make Over 40M Doses of the Sputnik V Vaccine in Egypt
    Bora Pharmaceuticals Completes Health Canada Inspection
    Nanoform, Aprecia Partner to Advance 3DP Nanomedicines
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Knoll Printing & Packaging Commits to a Healthy Ocean and Planet
    New Sustainable Jar from APC Packaging
    Qosmedix Launches Corporate Social Responsibility Initiative
    Happi

    Latest Breaking News From Happi

    Multi-Purpose Sustainable 'Just Add Water' Household Cleaner Expands Cleaning Products
    Kao Launches Oribe in Japan
    Love Beauty and Planet Shares Sustainability Initiatives With Refillable Hair Care at Target
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    Acrylic Resins Market Worth $21.9 Billion by 2025: MarketsandMarkets
    SE-DA Invests in Kornit Presto S
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Epson upgrades SurePress demo facility
    Xeikon helps converters navigate toner and inkjet
    Mactac introduces Simply Sustainable initiative
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Savaré Strengthens Technical Support for the Americas
    FiberVisions, Avgol Partner with Polymateria
    High-Tech Conversions Launches Wipes Dispenser
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    FDA Clears Orthofix's 3D-Printed FORZA Titanium TLIF Spacer System
    Patients Conclude Clinical Visits in Knee Osteoarthritis Treatment Study
    SeaSpine Begins Limited Rollout of WaveForm TO 3D-Printed Interbodies
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Identiv, Ameta International Announce US, Canadian Distribution Partnership
    Adesis Achieves ISO 9001:2015 Certification
    Louis Widmer SA Complies with EU Anti-Counterfeiting Directive with Zebra Technologies’ Solution

    Copyright © 2021 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