OVERVIEW OF THE PAINT INDUSTRY

A boom in the Indian housing sector, increasing urbanization, easy availability of housing

loans and a shift from semi‐permanent to permanent housing structures have been driving growth

in the decorative paints segment, which accounts for nearly 75% of the Indian paint industry.

There is seasonality involved in the demand for decorative paints. Consumption peaks around

festive time.

Indian paints industry is Rs.15, 000 crore market which has been growing at an average

rate of 13% over the last five years. Based on the 11 major economies, the Asia‐Pacific paint

market has been rated at almost 13.9 million tons in 2009, and is forecast to grow by about 7.9%

per year in the period to 2014.

OBJECTIVE: To make an in dept study on the Indian

paint industry and look for its future prospects

Structure of Paint Industry:

Paints can be classified into two segments

1] Decorative Paints 2] Industrial Paints

Decorative paints contribute nearly 75% of the pie with Industrial paints accounting for the rest.

Nearly 65% of the market is accounted by organized players.  

Structural growth story with strong linkages to economy

The Indian Paint Industry is a direct play on the growing India Consumption story. Analysis of the past data trends suggest strong correlation between paints volume growth and India GDP growth.

Market Share of Organized Players:

The major players in the paint industry are:

1. Asian Paints-more than 40%2. Kansai Nerolac-17%3. Berger-17%4. ICI-11%

A number of foreign players have subsidiaries in India including:

1. Jotun (powder, marine and decorative)

2. AkzoNobel (powder, protective and automotive refinish)

3. Nippon Paints (decorative)

4. Choguku (marine)

5. DuPont (automotive refinish)

6. Becker (coil coatings)

Industrial Sector Composition:

Industrial Sector Composition:

Automotive Paints - 50% 

High Performance Coating - 30% 

Powder Coating - 10% 

Coil Coating - 5% 

Marine Paints - 5%