Paint Industry Analysis
Paint Industry in India
The Indian paint industry is valued at Rs 26,000 crore by to AC Nielsen with 70 per cent of it being decorative paints and the remaining 30 per cent being industrial. The per capita paint consumption has been estimated to be 2.57 kgs. The size of the industry is 3.1 million tonnes with decorative paints being 2.4 million tonnes and industrial paints being 0.7 million tonnes in volume terms. The Indian paint industry is growing at a double digit rate for several years now, unlike in the western countries and Japan where the growth has stagnated. The paint market is estimated to double to Rs 50,000 crore by 2016 with per capita consumption increasing to over 4 kgs. And it is expected to continue growing at around 15% as historically it has grown at an average of 1.8 times the GDP rate. Industry leaders are hopeful of achieving the ambitious growth over the next four years.
According to the experts in this field, the growth in the market is going to be driven by increase in the propensity to spend and growing population with increasing number of nuclear families. Infrastructure is at the lowest level in the country today, and so there is a lot of scope for a sustained growth in the industrial paints business. The demand for industrial paint is going to be driven by the pick-up in the automobile industry and growth in infrastructure in India.
A few salient features of paint industry in India: * The paint industry over the next five years is expected to grow at 12-13% annually. Demand has been low during the current few years for the industry as a whole due to subdued demand across key sectors and rising inflation. * In the unorganised segment, there are about 2,000 units having small and medium sized paint manufacturing plants. The unorganised sector controls around 35% of the paint market, with the organised sector accounting for the balance * Top organised players include Asian Paints, Kansai Nerolac, Berger Paints and ICI,
The Indian paint industry is valued at Rs 26,000 crore by to AC Nielsen with 70 per cent of it being decorative paints and the remaining 30 per cent being industrial. The per capita paint consumption has been estimated to be 2.57 kgs. The size of the industry is 3.1 million tonnes with decorative paints being 2.4 million tonnes and industrial paints being 0.7 million tonnes in volume terms. The Indian paint industry is growing at a double digit rate for several years now, unlike in the western countries and Japan where the growth has stagnated. The paint market is estimated to double to Rs 50,000 crore by 2016 with per capita consumption increasing to over 4 kgs. And it is expected to continue growing at around 15% as historically it has grown at an average of 1.8 times the GDP rate. Industry leaders are hopeful of achieving the ambitious growth over the next four years.
According to the experts in this field, the growth in the market is going to be driven by increase in the propensity to spend and growing population with increasing number of nuclear families. Infrastructure is at the lowest level in the country today, and so there is a lot of scope for a sustained growth in the industrial paints business. The demand for industrial paint is going to be driven by the pick-up in the automobile industry and growth in infrastructure in India.
A few salient features of paint industry in India: * The paint industry over the next five years is expected to grow at 12-13% annually. Demand has been low during the current few years for the industry as a whole due to subdued demand across key sectors and rising inflation. * In the unorganised segment, there are about 2,000 units having small and medium sized paint manufacturing plants. The unorganised sector controls around 35% of the paint market, with the organised sector accounting for the balance * Top organised players include Asian Paints, Kansai Nerolac, Berger Paints and ICI,