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The Indian Paint Industry growing at 1.5 times the GDP growth. Assuming the country GDP grows @ 7.5% per annum, the Indian paint industry is expected to grow at a CAGR of 11.85% from Rs. 112 bn. in Fiscal Year 2007 to Rs. 156.7 bn in Fiscal Year 2010. In order to cater the incremental demand of the domestic paint industry, total capacity addition coming upstream in over the period of two year i.e. from Fiscal Year 2008 to Fiscal Year 2010 is around 255450 tonne...
Paints Industry
Paint is defined as the group of emulsions, consisting of pigments suspended in a liquid medium, for use as decorative or protective t ranges from the broad group of environmentally-sound latex paints used to decorate and protect homes and the translucent coatings that line the interior of food containers, to the ...chemically-complex, multi-component auto-refinishes that automobile manufacturers apply on the assembly line.
Market Structure
The size of the Indian paint industry is valued at ~Rs.112 bn. Indian Paints Industry can be classified into two sub-segments:
Volume Share Value Share
Decorative Paints 90% 75%
Industrial Paints 10% 25%
Size of Paint Industry is pegged at Rs. 112 bn.
The paint industry is divided into organized and unorganized sector. The unorganized segment plays a huge role in decorative paint segment due to low technical know-how and highly scattered market. The organized segment constitutes around 54% of the total volume and 65% of value of paints industry. Again the whole paints industry can be classified into decorative (75% of total industry size) and industrial paints (25% of total industry size). Further, in organized segment, the top 6 players account for around 84% by volume and 63% by value. The remaining players in organized business are largely present in non-auto industrial segment, and the unorganized players are mainly operational in decorative paints segment as industrial paints requires high technological know how and client tie-ups.
Demand Supply Dynamics
The Indian Paint Industry grew by 18% from Rs. 95 bn. in Fiscal Year 2006 to Rs. 112 bn in Fiscal Year 2007. The industry has a positive correlation with GDP as both have same drivers for growth. Demand for paints is both, derived as well as direct. The demand for decorative paints is a direct demand whereas the demand for industrial paints is a derived demand.
Increase in Real Estate Investments: The demand for decorative paints is directly related to the increase in the investment in the real estate thus increasing the cement area. Out of the total demand for decorative paints, around 30-40% of the demand comes from the fresh construction.
The size of real estate industry is estimated to grow to Rs. 18,517 Bn, over next five years period. Investment in real estate will be primarily led by housing, which is expected to account for nearly 90% of total investment in the sector. Indias robust economic growth and resultant increase in income are speeding up the pace of India, about three fourth (3/4) of real estate development is for residential use and balance one fourth (1/4) is predominantly for commercial use. Paint industry grew by 18% as compared to last year New real estate construction accounts for 30-40% for demand for decorative paints
Housing investments (permanent, non-slum houses) are expected to grow at a TAGR of 12% over the next 5 years period.
On other hand, repainting activity which accounts for 70% of the decorative paint demand is also increasing, mainly due to increase of choice and better marketing. The demand from the repainting activity has increased by 6-7 percent in last two year.
Based on the expected investment in the housing, demand for paint is expected to increase at a CAGR of 12 percent over the next 5 years.
Increase in Industrial Paints: The industrial paint segment is divided into automotive industrial paints and non-automotive industrial paints. Increase in income levels of the consumers contributes towards the growth in the auto-segment and growth in the industrial segments like power, road and infrastructure leads to growth in the non-automotive segment. Along with these, growing needs for consumer durables and export opportunity for auto ancillaries will also contribute towards the growth of industrial paints.
Prices in line with substitute product: Large scale of operations and technical know-how has helped prices of paints to come down. They are now in line with those of substitute products like lime wash, distemper etc., manufactured by local players. This gives consumers the incentive to shift from lime to paints.
Supply Side
The dynamics that control the supply side scenario are:
Distribution
In case of industrial paints, distribution network doesnt play an important role, whereas the situation is totally different in case of the decorative paints. India being a wide and scattered market having a large distribution network becomes prime requirement for any company in decorative paints business.
Outsourcing:
The organized players in the decorative paint segment have to compete directly with those in the unorganized sector manufacturing low cost paints like distemper and enamels. In-order to face this competition organize players outsource small part of their production (25-30%).
Import Scenario:
Indian climatic conditions are not conducive for foreign formulations and modification cost in product formulation is quite high. As a result, imports are no threat to the Indian players. In case of industrial paints, most of the major players in the industry already have a tie-up with global players, for latest technology and markets accessible to them. It negates the further supply from the international markets even after reduction of import duty from 40% to 15.3% in last 8 years. This is where Premium Coatings appear in a game, with good support from our principals and related expertise company is in the best position to povide the crack codes of the business to name some we have promoted few from the overseas in India are Lafash, Brignola, Candis and Cover-it.
Above literature is self explanatory for a kind of potential left in the market our scope of work will be to finalize the channel of distribution, project sales & to arrange supply and apply network which is essential especially for your designer can work on the targets which you have in mind from this sector, at our work you will find first a good infrastructure, factory located in Chennai where as company have its marketing offices all over India, second many handful hands, third preview software especially for project sales, fourth good network of painters and supply and apply company and team mindset of being a good listener.
Should you need to know anything else please revert back with your opinion.
Best regards,
Imran Siddiqui
Overseas Business Development
Premium Coatings India (P) Ltd.
Mob: 91 9305851097 Read more
Paints Industry
Paint is defined as the group of emulsions, consisting of pigments suspended in a liquid medium, for use as decorative or protective t ranges from the broad group of environmentally-sound latex paints used to decorate and protect homes and the translucent coatings that line the interior of food containers, to the ...chemically-complex, multi-component auto-refinishes that automobile manufacturers apply on the assembly line.
Market Structure
The size of the Indian paint industry is valued at ~Rs.112 bn. Indian Paints Industry can be classified into two sub-segments:
Volume Share Value Share
Decorative Paints 90% 75%
Industrial Paints 10% 25%
Size of Paint Industry is pegged at Rs. 112 bn.
The paint industry is divided into organized and unorganized sector. The unorganized segment plays a huge role in decorative paint segment due to low technical know-how and highly scattered market. The organized segment constitutes around 54% of the total volume and 65% of value of paints industry. Again the whole paints industry can be classified into decorative (75% of total industry size) and industrial paints (25% of total industry size). Further, in organized segment, the top 6 players account for around 84% by volume and 63% by value. The remaining players in organized business are largely present in non-auto industrial segment, and the unorganized players are mainly operational in decorative paints segment as industrial paints requires high technological know how and client tie-ups.
Demand Supply Dynamics
The Indian Paint Industry grew by 18% from Rs. 95 bn. in Fiscal Year 2006 to Rs. 112 bn in Fiscal Year 2007. The industry has a positive correlation with GDP as both have same drivers for growth. Demand for paints is both, derived as well as direct. The demand for decorative paints is a direct demand whereas the demand for industrial paints is a derived demand.
Increase in Real Estate Investments: The demand for decorative paints is directly related to the increase in the investment in the real estate thus increasing the cement area. Out of the total demand for decorative paints, around 30-40% of the demand comes from the fresh construction.
The size of real estate industry is estimated to grow to Rs. 18,517 Bn, over next five years period. Investment in real estate will be primarily led by housing, which is expected to account for nearly 90% of total investment in the sector. Indias robust economic growth and resultant increase in income are speeding up the pace of India, about three fourth (3/4) of real estate development is for residential use and balance one fourth (1/4) is predominantly for commercial use. Paint industry grew by 18% as compared to last year New real estate construction accounts for 30-40% for demand for decorative paints
Housing investments (permanent, non-slum houses) are expected to grow at a TAGR of 12% over the next 5 years period.
On other hand, repainting activity which accounts for 70% of the decorative paint demand is also increasing, mainly due to increase of choice and better marketing. The demand from the repainting activity has increased by 6-7 percent in last two year.
Based on the expected investment in the housing, demand for paint is expected to increase at a CAGR of 12 percent over the next 5 years.
Increase in Industrial Paints: The industrial paint segment is divided into automotive industrial paints and non-automotive industrial paints. Increase in income levels of the consumers contributes towards the growth in the auto-segment and growth in the industrial segments like power, road and infrastructure leads to growth in the non-automotive segment. Along with these, growing needs for consumer durables and export opportunity for auto ancillaries will also contribute towards the growth of industrial paints.
Prices in line with substitute product: Large scale of operations and technical know-how has helped prices of paints to come down. They are now in line with those of substitute products like lime wash, distemper etc., manufactured by local players. This gives consumers the incentive to shift from lime to paints.
Supply Side
The dynamics that control the supply side scenario are:
Distribution
In case of industrial paints, distribution network doesnt play an important role, whereas the situation is totally different in case of the decorative paints. India being a wide and scattered market having a large distribution network becomes prime requirement for any company in decorative paints business.
Outsourcing:
The organized players in the decorative paint segment have to compete directly with those in the unorganized sector manufacturing low cost paints like distemper and enamels. In-order to face this competition organize players outsource small part of their production (25-30%).
Import Scenario:
Indian climatic conditions are not conducive for foreign formulations and modification cost in product formulation is quite high. As a result, imports are no threat to the Indian players. In case of industrial paints, most of the major players in the industry already have a tie-up with global players, for latest technology and markets accessible to them. It negates the further supply from the international markets even after reduction of import duty from 40% to 15.3% in last 8 years. This is where Premium Coatings appear in a game, with good support from our principals and related expertise company is in the best position to povide the crack codes of the business to name some we have promoted few from the overseas in India are Lafash, Brignola, Candis and Cover-it.
Above literature is self explanatory for a kind of potential left in the market our scope of work will be to finalize the channel of distribution, project sales & to arrange supply and apply network which is essential especially for your designer can work on the targets which you have in mind from this sector, at our work you will find first a good infrastructure, factory located in Chennai where as company have its marketing offices all over India, second many handful hands, third preview software especially for project sales, fourth good network of painters and supply and apply company and team mindset of being a good listener.
Should you need to know anything else please revert back with your opinion.
Best regards,
Imran Siddiqui
Overseas Business Development
Premium Coatings India (P) Ltd.
Mob: 91 9305851097 Read more
Type of Paints
- Other Paints
- Primers
- Titanium dioxide paints
- Enamel Paints
- Anti-Graffiti Paints
- No-VOC Paints
- Varnish
- Shellac
- Wood stains
- Lacquers
- Glazes
- Roof Coatings
- Fingerpaints
- Inks
Supplier Category
- Importer of Paints
- Exporter of Paints
- Distributor of Paints
- Manufacturer of Paints
Category of paints
- Indoor Paints
- Outdoor Paints
- Industrial Paints
Other Products
- Other Supplier Products
- Pigments
- Packaging Machines
- Chemical Processing Equipment
- Dyes
- Paint Consulting
- Chemicals
- Chemical Software
- Paint Equipment
- Packagings