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Paints and their allied products like enamels, varnishes, pigments, printing inks and synthetic resins protect national assets from corrosion. These are increasingly being used in automotive, engineering and consumer durable sectors. Thus, economic development has a direct bearing on the paint industry. The paint industry is constantly upgrading its technology to meet the changing needs of the consumers.
The industry is broadly divided into two segments-decorative and industrial paints. The decorative paints which accounts for 75 per cent of the organized sector, are meant to protect valuable assets like buildings. This market is highly price sensitive. The industrial paints accounts for the rest 25 per cent share and are meant to protect white goods appliances from corrosion.
The size of the paints industry in India is around Rs 95 billion. The current demand is estimated at 650,000 tonnes per annum. This industry is seasonal in nature. There are around 26 paint units in the organized sector, accounting for around 65 per cent of the total output. The unorganized sector has about 2000 units. The total output at present is of the order of 4.5 lakh tonnes.
Major players in this sector includes Asian paints which has a market share of 44 per cent, followed by Kansai Nerolac 20 per cent, Berger paints 17 per cent, ICI 12 per cent and Shalimar paints 4.4 per cent and others 2.6 per cent. Today a number of foreign players have subsidiaries in India. Berger is strong in decorative segment and is the leader in protective coatings. Kansai Nerolac is the leading player in automotive OEM finishes and powder coatings. ICI (India) is a major player in decorative emulsion segment. The industrial paints market is valued at Rs 21 billion.
India’s paint industry has a bright future. The Indian paints market has the potential to grow over the next decade at 15 to 20 per cent per annum owing to more investments in the housing segment and improving infrastructure ,high growth in the Indian automobile industry , etc. which in turn would mean greater demand for paints, as most people aspire for better lifestyle. Moreover the per capita consumption is also low. The demand for premium-category paints is likely to increase with rise in construction of commercial infrastructure. The players with aggressive marketing strategies and comprehensive product portfolios will grow at a faster rate. The emerging trends in technology and marketing indicate that the industry is likely to consolidate in the coming years with industry leaders improving their market share.
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