The paint industry estimated to double by 2016: Leading players hopeful

AC Nielsen in its latest report based on the data available on the coating industry for the year 2011-12 has valued the Indian paint industry at Rs 26,000 crore with 71 per cent of it being decorative paints and the remaining being industrial.

In volume terms, 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. The per capita paint consumption has been estimated to be 2.57 kgs.

The highlights of the report were announced today at the 26 th Indian Paint Conference at Mumbai.
The paint market is estimated to double to Rs 50,000 crore by 2016 with per capita consumption increasing to over 4 kgs. Industry leaders are hopeful of achieving the ambitious growth over the next four years.
According to the various head honchos of the paint companies assembled at the conference, the growth in the market is going to be driven by emergence of the middle class in India, increase in the propensity to spend and growing young population tending to stay in nuclear families.
The demand for industrial paint is going to be driven by the pick-up in the automobile industry and growth in infrastructure in a country like India. "Infrastructure is at the lowest level in the country today, hence we see a sustained growth in the industrial paints business", said H M Bharuka, managing director, Kansai Nerolac Paints.
With reference to the rising input cost, KBS Anand, managing director of Asian Paints said, "We have to learn to live with volatility in prices".
Demand in China is the major factor that drives the input cost for the industry and this demand is expected to pickup leading to rise in raw material prices within a year, he added.