Indian Paint & Coating Association (IPCA) is an association,
which represents both the organized and unorganized sector in the paint and
coating industry. In 2004, in an attempt to coordinate industry policy, the
association was formed. IPCA is a voluntary, non-profit trade association
comprising of over 500 paint and coatings manufacturers, raw materials
suppliers and traders. Harish Agrawal, President, IPCA spoke to Madhu Gupta on the evolving
scenario across India's paint and coating industry.
What is the current
market size of paint and coating industry of India? Tell us about the main
growth drivers for India's paint and coating industry?
The market size is around
24,000 crore. Organised sector claims that it is growing at the
rate of 18 to 20 per cent. Overall the industry is growing at the rate of 10
to 12 per cent. Infrastructure is a major growth driver. Lot of projects
(government & private) is coming up in the infrastructure sector like
road construction, building construction, metro rail projects etc. Secondly,
automobile industry is also witnessing good growth. Because of infrastructure
and automobile industry there is good growth in industrial finishes and
(decorative) architectural finishes. Value wise, around 68 to 70 per cent of
the share is held by the organized sector and around 32 to 30 per cent are
with the small scale industry.
What are the various
challenges facing India's paint and coating industry? Going forward, tell us
about the type of governmental support expected by the industry?
Now, the market demands innovative products. So, the
manufacturers have to upgrade their technologies. Without up-gradation of
technology, they (large & small-scale players) will not be able to
survive. Across India's paints and coatings industry around 3000 small-scale
players are operating and they will grow only with the assistance of
government. Government should offer some assistance to small-scale industry
like in procuring raw materials. Government should be liberal to the
small-scale industry and should provide lot of facilities to the small-scale
industry - only then they will be able to survive. Basic need is that
small-scale players should improve their volume and also enhance quality.
Globally, dollar prices are up and rupee is going down - so definitely prices
for raw materials will increase. Survival will be difficult. Smallscale
players have to increase their product quality or foreign companies will come
and take over. For survival, they have to improve the quality which is a
difficult situation. This phase will continue for another six to seven
months.
Also, budget proposal is there where-in industry will be proposing for single
point taxation. There are many associations operating in the country like
Indian Paint Association (IPA), Color Society etc. I personally feel that all
these associations/societies should come together and form a Federation,
where-in issues bothering all these associations/ societies should be
discussed with each other, and a common policy should be devised which will
be beneficial for each other and should be put in front of the government. By
forming a Federation - we should move collectively and put our requirements /
demands together to the government through the federation.
What are the latest
trends in India's paint and coating industry?
In future, all water based paints and coatings are going to come. Solvent
based coatings will go - which will take another four to five years. Water
based coatings are costlier.
India is a country where per capita consumption has increased from 0.800 gms
to 1.2 kg which is still very low - but cost is a very important factor in
India. If we switch-over to water based coatings then definitely the cost
will increase which people are not ready to accept - that is a challenge
right now. It will take another four to five years for total conversion from
solvent based to water based paints and coatings. Globally per capita
consumption is 15 kg. Earlier, in India per capita consumption was 0.800 gms
and now it has gone up to 1.2 to 1.4 kg. In coming three years, per capita
consumption will be more than 2 kgs.
If we see population wise, India is the second largest in the world and that
way we are quite good. In Singapore, population is very less and per capita
consumption is around 26 kgs. India will not go more than 3 to 3.5 kg in next
10 years in per capita consumption. Comparing population-wise we are quite
good.
In the Indian paint and costing industry, now there is lot of awareness about
technology. People understand that technology is the basic need and they have
to improve their quality, so people/manufacturers are attending the
international conferences, appointing technical people - they are learning a
lot, younger generation is going to come and definitely there will be a
change - better quality products will be seen. Indian manufacturers have got
the ability to produce better quality and they are changing.
What are the export
opportunities?
Export opportunities are very less as far as coating is concerned. For
instance, for high performance coating the basic raw material is imported.
And on that various duties like excise duty etc. is being levied so as a
result raw material prices are very high. Right now, there is possibility for
export but even for neighbouring countries chances are very less. To the
neighbouring countries like Nepal, Sri Lanka, Pakistan 4 to 5 per cent export
possibility exists. In future it may increase but chances are not very much
high for exports. India is importing raw materials from Malaysia, Thailand,
Singapore, European Countries and maximum materials are being imported from
China. In future, import will not reduce because many times raw materials are
not easily available and also raw materials which are available in India -
mostly are not up to the mark.
Tell us about IPCA
and its activities?
IPCA was formed in 2003 and the prime motto is innovation; technology and
sustainability. IPCA also spreads education among the small scale industry so
that they will enhance the quality of their products. For the same, IPCA
holds seminars, conduct educational programs etc. Small scale should be able
to improve their technology, through that they will be able to bring innovative
products and through innovative products they will get sustainability (by
having better pricing for their products).
Indian Paint & Coating Association (IPCA) is an amalgam of Paint, Ink and
Powder Coating Manufacturers, Raw Materials Manufacturers, Machinery
Manufacturers and Allied Industries; It has a Pan - India presence with
active Regions in Delhi NCR, Haryana, Greater U.P., Western U.P., M.P. &
Chhattisgarh, and Maharashtra & Gujarat. It has strength of around 900
plus members and growing.
Its recent tie-up with Tata Steel Ltd. to impart networking knowledge sharing
Training Sessions and problems solving with respect to galvanized and CRC
sheets has set new bench marks for what and industry body can do and provide
for its members.
This kind of core technical input from an industry body has catapulted IPCA
into a different league altogether. IPCA actively liaisons with the
government for favorable policies for its members, it is suitably represented
on various committees like VAT an Excise. It gives regular proposals during
the budget making exercise of the Central Government in New Delhi.
IPCA is a firm believer in corporate social responsibility and actively plays
its part in promoting green coatings which build a healthy environment.
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