The Indian paint industry was
given a market value of US$5 billion at the beginning of 2013, and has been
forecast to double by the time we reach 2018.
Though the paint industry
witnessed some slowdown in the last few years due to global economic
uncertainties and growing urbanization, good growth has been forecast for the
next five years.
In recent years several factors
have contributed to the fortunes of the Indian paint industry including the
adoption of the latest technologies, innovative product launches, aggressive
marketing strategies, comprehensive product portfolios, and value added
services offered by companies.
In recent years, there has been
a major transition in the type of products and services brought in by
manufacturers and an evolving preference towards mid and premium segment
products. Innovation has been seen all around the market landscape of
decorative and industrial paint categories.
As the paints market has grown
and evolved there has been increased demand for premium products. This has come
about as buyers have become more aesthetically aware, and have the means to opt
for better value products, even at higher prices.
As with other fields, some
challenges also exists in this promising sector that can affect the growth
trajectory of the paint industry, if not handled accordingly. For instance, the
industry is highly raw material-intensive and any fluctuation in the
availability of raw material leads to substantial price fluctuation in paint
production costs.
In terms of volume, the
industry stood at 3.11 million tonnes, of which the decorative segment
accounted for an approximate nearly 77% share in 2012.
The 70:30 trend within the
decorative and industrial segments is expected to continue in the future,
mainly because of the growth in urbanisation and the increase in disposable
income.
The country looks set to
continue to enjoy a healthy growth rate compared to other economies, backed by
the increasing level of disposable income, and demand from infrastructure,
industrial and automotive sectors.
Posted By:
Reema Kapoor
ICIS
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