Indian Companies vs Mnc
CO ATING S CORNER
Indian companies vs MNCs
Indian paints & coatings industry has been showing healthy growth over last few years. This has attracted investments from many multinationals companies (MNCs). While few MNCs are consolidating their presence in India, new players are planning to enter the market. Indian market is all set to witness an interesting competition between domestic companies and MNCs, as they try to increase their marketshare.
Dr Mosongo Moukwa
i
ndia is one of the fastest growing countries in the world, with a nine per cent GDP growth. In the current recession period (2009-10), the government is projecting 6-7 per cent GDP growth. The country is consuming coatings at a rate well above the GDP growth rate. The increase in volume has been 12-14 per cent. The scenario is attracting a number of new entrants. A few multinationals also include the list. Akzo (through the acquisition of ICI) and Sherwin Williams (through the acquisition of Nitco) have recently strengthened their positions in the decorative segments; while Jotun and Nippon Paints have enhanced their presence in the industrial segments. Recently, Nippon has been repositioning itself in the decorative segment. A number of raw material suppliers such as Rohm and Haas, BASF, Eastman and Dow are also opening shop and setting up distribution & manufacturing facilities to take advantage of the opportunities. India is now open to foreign competition in most key industries, making it highly attractive to MNCs, which appear
increasingly aggressive and long-term in their investment time horizons in this market. China and India account for more than two-thirds of all new research and development (R&D) centres established by MNCs in recent years. Their total incoming capital investment into China and India combined is high compared to the amount flowing into other emerging economies. What will be the ranks of the world’s leading MNCs in the paints & coatings industry in 25-50 years
Indian companies vs MNCs
Indian paints & coatings industry has been showing healthy growth over last few years. This has attracted investments from many multinationals companies (MNCs). While few MNCs are consolidating their presence in India, new players are planning to enter the market. Indian market is all set to witness an interesting competition between domestic companies and MNCs, as they try to increase their marketshare.
Dr Mosongo Moukwa
i
ndia is one of the fastest growing countries in the world, with a nine per cent GDP growth. In the current recession period (2009-10), the government is projecting 6-7 per cent GDP growth. The country is consuming coatings at a rate well above the GDP growth rate. The increase in volume has been 12-14 per cent. The scenario is attracting a number of new entrants. A few multinationals also include the list. Akzo (through the acquisition of ICI) and Sherwin Williams (through the acquisition of Nitco) have recently strengthened their positions in the decorative segments; while Jotun and Nippon Paints have enhanced their presence in the industrial segments. Recently, Nippon has been repositioning itself in the decorative segment. A number of raw material suppliers such as Rohm and Haas, BASF, Eastman and Dow are also opening shop and setting up distribution & manufacturing facilities to take advantage of the opportunities. India is now open to foreign competition in most key industries, making it highly attractive to MNCs, which appear
increasingly aggressive and long-term in their investment time horizons in this market. China and India account for more than two-thirds of all new research and development (R&D) centres established by MNCs in recent years. Their total incoming capital investment into China and India combined is high compared to the amount flowing into other emerging economies. What will be the ranks of the world’s leading MNCs in the paints & coatings industry in 25-50 years