Indian Paints & Coatings Market - Low Consumption Offers Growth Potential

The Indian Paints industry has come a long way since its start in the year 1902, from merely a decorative paints market, strongly influenced by the festivals, to a well diversified market now. The paints market now constitutes decorative as well as industrial paints. The paints market is also more technologically advanced. The industry is raw material intensive, as these constitute a major portion of the total cost of the product.

Low household consumption on paints in India, compared to other developing regions, offers high growth potential of the market. The industry is dominated by the organized sector, which constitutes more than two-thirds of the total market. Asian Paints is the market leader in the organized sector. The other major players are Kansai Nerolac Paints, Berger Paints and ICI.

This report provides a basic understanding of the paints market in India. It discusses the market value, growth rate, technological advancements, market drivers and challenges being faced by the paints market. The report goes on to profile the major players of the industry, describing their strategies.

• The paints & coatings industry in India is valued at US$2.72 billion. It has been growing at about 1.6 times the GDP growth rate. For the coming years it is expected to grow at a CAGR of 13-15%.
• Decorative paints market is valued at US$1.9 billion, while the industrial paints segment is valued at US$ 0.83 billion.
• In volume terms, the sector posted a 16% YoY growth in FY07. The current demand is estimated to be around 650,000 tonnes per annum.
• India' s exports of paints and allied products in the year 2005-06 registered a growth of 30.1 per cent. The exports in that year were valued at US$827.3 million. US constitutes the largest part of India' s exports, valued at US$123.85 million and growing at 38.26%.
• Indian paints industry is 0.6% of the world paints industry. The current household spend on paints in India is only US$10 per annum. The per capita consumption in India is among the lowest at 1 kg per annum.
• In the year 2005-06 there were 26 units in the organized sector of the Indian paints industry, with combined annual installed capacity of 2,78,000 tonnes per annum. They accounted for 60% of the total production of the Indian paints industry.