Yogender Singh, India, Asia-Pacific Correspondent12.07.20
India is full of surprises!
The same holds for the country’s paint and coating industry.
Despite recent advances in the country’s industrial development, India’s coating market is dominated by the decorative segment with about 75 percent of the total market share.
This is unlike the global and other coatings markets’ structure in the Asia Pacific region, where the decorative (architectural) segment contributes nearly 50 percent of the total paint market.
The industrial coatings segment in the country has not been able to match the growth figures of architectural coatings in the country.
Market overview
Estimated to be at about $1.9 billion, industrial paint accounts for 25 percent of total paint demand in India.
The sub-segment includes auto OEM, refinishing, protective coatings, powder coatings, general industrial (GI) and other segments.
Auto OEM and refinish forms the largest component of industrial paints in India.
Unlike the decorative business model, which largely operates through strong distribution networks, in the case of industrial paints the sales contribution of the dealer channel is low.
Further, unlike decorative paints, the industrial coating segment is more capital intensive and requires a strong corporate relation to run the business.
Hence, the industrial paint category is dominated by organized players in India. Kansai Nerolac is the market leader in automotive paint, general industrial segment, while Berger
Paints is the market leader in protective coatings.
Major Indian paint producers have tied up with other international players for the tech know-how in the industrial paint category.
The Indian paint industry has grown at a CAGR of 10.4 percent from Fiscal Year 2008 when the market was valued at INR 159 billion ($2.1 billion) to Fiscal Year 2020 when the market size reached INR 570 billion ($7.75 billion).
Over the years, the decorative paint segment has grown at a CAGR of 11.4 percent against the industrial segment, which has grown at a CAGR of 7.9 percent.
Industrial paint’s lower contribution in India’s overall paint market is due to lower industrial and infrastructure development compared to other matured countries and developing countries like China, and higher technical know-how required in the industrial paint segment, which in turn leads to negligible involvement of unorganized players and thus a lower market size.
The industrial paint segment is highly dependent on business cycles and economic conditions.
The growth of the industrial paint segment is highly dependent on the automotive sector.
The auto sector has been the leading consumer of industrial coating in the country with nearly 46 percent of the demand coming from it.
Automotive coating
A direct function of the automotive industry, the automotive coatings segment in the country has been facing challenging times due to the slowdown faced by the auto industry over the last two years period. Currently, India’s automotive coating market is valued at INR 65 billion ($875 million).
Due to automotive coating’s high contribution to the industrial coatings segment in India, there is a direct positive correlation between the growth of the auto industry and the growth of industrial paints.
During the eight years from Fiscal Year 2008 to Fiscal Year 2016, when auto volumes grew at a CAGR of 9.8 percent, the industrial paint segment grew at a rate of 10.2 percent.
However, given the slowdown in the auto industry in recent years, the 12-year auto volume CAGR (from FY08-FY20) recorded at lower 6.9 percent, has, in turn, slowed down growth in industrial coatings during the same duration which was recorded at 7.9 percent.
Kansai Nerolac Paints Ltd. (KNPL)
Kansai Nerolac Paints India, a subsidiary of Kansai Paints Co. Ltd. Japan is the leader in automotive coatings, general industrial coatings and powder coatings.
The company has completed 100 years of presence in India KNPL has a manufacturing capacity of 518 million liters across six plants in India and has another unit coming up at
Visakhapatnam in Andhra Pradesh.
The company has also acquired Marpol Pvt. Ltd. (powder coating) and Perma Construction Aids Pvt Ltd (construction chemicals) and has filed to merge with these companies.
Asian Paints PPG Pvt. Limited
A subsidiary of India’s largest paint company, Asian Paints PPG Pvt Limited is a leading player in the field of protective coatings, powder coatings, floor coatings and road marking coatings.
The company is a 50/50 joint venture between Asian Paints Ltd. and PPG Industries.
PPG Industries, headquartered in Pittsburgh, Pennsylvania, is a global, multi-billion dollar, multinational company and a world leader in the paint and coatings industry and performance and industrial coatings.
The 50/50 joint venture company in India, Asian Paints PPG, combines the strengths of both partners to offer technological superiority, operational excellence and aesthetics at an optimized cost, ensuring total customer satisfaction.
AkzoNobel India
Industrial coatings account for 40 percent of the total business of AkzoNobel India.
The company is one of the leading suppliers of marine coatings, protective coatings, powder coatings, specialty coatings and vehicle refinishes.
The company’s portfolio includes brands such as Dulux, Interpon, Trinar, Resicoat, Wanda, Sikkens.
AkzoNobel has five plants, which are located at Telangana, Karnataka, Madhya Pradesh, Punjab and Maharashtra.
Berger Paints India
India’s second-largest paint producer Berger Paint’s 20 percent revenue comes from industrial coating segments.
Nippon Paint India
Nippon Paint India, the domestic arm of the Japan-based company has been operational in India for more than 10 years and produces coating products for automotive and industrial segments.
JSW Paints
JSW Paints Pvt. Ltd., part of the $13 billion JSW Group, started the paint division in April 2019.
The company set up its fully-automated industrial coil coatings facility with an annual capacity of 25,000 KL in Mumbai.
Currently, the company’s products are available in the southern and western states of the country.
The same holds for the country’s paint and coating industry.
Despite recent advances in the country’s industrial development, India’s coating market is dominated by the decorative segment with about 75 percent of the total market share.
This is unlike the global and other coatings markets’ structure in the Asia Pacific region, where the decorative (architectural) segment contributes nearly 50 percent of the total paint market.
The industrial coatings segment in the country has not been able to match the growth figures of architectural coatings in the country.
Market overview
Estimated to be at about $1.9 billion, industrial paint accounts for 25 percent of total paint demand in India.
The sub-segment includes auto OEM, refinishing, protective coatings, powder coatings, general industrial (GI) and other segments.
Auto OEM and refinish forms the largest component of industrial paints in India.
Unlike the decorative business model, which largely operates through strong distribution networks, in the case of industrial paints the sales contribution of the dealer channel is low.
Further, unlike decorative paints, the industrial coating segment is more capital intensive and requires a strong corporate relation to run the business.
Hence, the industrial paint category is dominated by organized players in India. Kansai Nerolac is the market leader in automotive paint, general industrial segment, while Berger
Paints is the market leader in protective coatings.
Major Indian paint producers have tied up with other international players for the tech know-how in the industrial paint category.
The Indian paint industry has grown at a CAGR of 10.4 percent from Fiscal Year 2008 when the market was valued at INR 159 billion ($2.1 billion) to Fiscal Year 2020 when the market size reached INR 570 billion ($7.75 billion).
Over the years, the decorative paint segment has grown at a CAGR of 11.4 percent against the industrial segment, which has grown at a CAGR of 7.9 percent.
Industrial paint’s lower contribution in India’s overall paint market is due to lower industrial and infrastructure development compared to other matured countries and developing countries like China, and higher technical know-how required in the industrial paint segment, which in turn leads to negligible involvement of unorganized players and thus a lower market size.
The industrial paint segment is highly dependent on business cycles and economic conditions.
The growth of the industrial paint segment is highly dependent on the automotive sector.
The auto sector has been the leading consumer of industrial coating in the country with nearly 46 percent of the demand coming from it.
Automotive coating
A direct function of the automotive industry, the automotive coatings segment in the country has been facing challenging times due to the slowdown faced by the auto industry over the last two years period. Currently, India’s automotive coating market is valued at INR 65 billion ($875 million).
Due to automotive coating’s high contribution to the industrial coatings segment in India, there is a direct positive correlation between the growth of the auto industry and the growth of industrial paints.
During the eight years from Fiscal Year 2008 to Fiscal Year 2016, when auto volumes grew at a CAGR of 9.8 percent, the industrial paint segment grew at a rate of 10.2 percent.
However, given the slowdown in the auto industry in recent years, the 12-year auto volume CAGR (from FY08-FY20) recorded at lower 6.9 percent, has, in turn, slowed down growth in industrial coatings during the same duration which was recorded at 7.9 percent.
Kansai Nerolac Paints Ltd. (KNPL)
Kansai Nerolac Paints India, a subsidiary of Kansai Paints Co. Ltd. Japan is the leader in automotive coatings, general industrial coatings and powder coatings.
The company has completed 100 years of presence in India KNPL has a manufacturing capacity of 518 million liters across six plants in India and has another unit coming up at
Visakhapatnam in Andhra Pradesh.
The company has also acquired Marpol Pvt. Ltd. (powder coating) and Perma Construction Aids Pvt Ltd (construction chemicals) and has filed to merge with these companies.
Asian Paints PPG Pvt. Limited
A subsidiary of India’s largest paint company, Asian Paints PPG Pvt Limited is a leading player in the field of protective coatings, powder coatings, floor coatings and road marking coatings.
The company is a 50/50 joint venture between Asian Paints Ltd. and PPG Industries.
PPG Industries, headquartered in Pittsburgh, Pennsylvania, is a global, multi-billion dollar, multinational company and a world leader in the paint and coatings industry and performance and industrial coatings.
The 50/50 joint venture company in India, Asian Paints PPG, combines the strengths of both partners to offer technological superiority, operational excellence and aesthetics at an optimized cost, ensuring total customer satisfaction.
AkzoNobel India
Industrial coatings account for 40 percent of the total business of AkzoNobel India.
The company is one of the leading suppliers of marine coatings, protective coatings, powder coatings, specialty coatings and vehicle refinishes.
The company’s portfolio includes brands such as Dulux, Interpon, Trinar, Resicoat, Wanda, Sikkens.
AkzoNobel has five plants, which are located at Telangana, Karnataka, Madhya Pradesh, Punjab and Maharashtra.
Berger Paints India
India’s second-largest paint producer Berger Paint’s 20 percent revenue comes from industrial coating segments.
Nippon Paint India
Nippon Paint India, the domestic arm of the Japan-based company has been operational in India for more than 10 years and produces coating products for automotive and industrial segments.
JSW Paints
JSW Paints Pvt. Ltd., part of the $13 billion JSW Group, started the paint division in April 2019.
The company set up its fully-automated industrial coil coatings facility with an annual capacity of 25,000 KL in Mumbai.
Currently, the company’s products are available in the southern and western states of the country.
