India Paint Industry

sunandaC

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India Paint Industry

The Indian paint industry worth Rs 43 bn has consolidated over the past four
years with the organized sector taking away share from unorganized segment.

The paint market is expected to grow at 8-10% p.a.over the next few years.

The growth could be high if industrial activity picks up as the industrial paint segment is gaining more importance.

Asian paints offer the best exposure being the market leader and an innovative marketing company.

Paint can be broadly classified as decorative and industrial on the basis of the end use. The Indian market is dominated by the decorative segment, which comprise almost 70%of consumption as compared to developed countries where the segment is more dominated.

The ratio is also likely to shift more towards industrial segments, especially with growth in the auto and white goods industry.


The unorganized sector has historically been dominant due to high excise structure. Over the last five years, the excise rate has come down drastically from 40% to 18% resulting in erosion of unorganized sector share.

The paint industry is characterized by low fixed asset intensity (As essentially it is mixing process). But the high working capital intensity (as the number of shades is large and there is seasonally in demand). The main investments are in brand building and distribution infrastructure.

New trends are emerging in technology and marketing. Introduction of tinting machines at the dealer/retailer level will bring down working capital costs. Also new technology is being used for increasing the utility and life span of paints.

Indian industry will have to keep pace with global technology changes to maintain their competitiveness. Already, a few alliances have entered into and the number is likely to increase in future.
 
India Paint Industry

The Indian paint industry worth Rs 43 bn has consolidated over the past four
years with the organized sector taking away share from unorganized segment.

The paint market is expected to grow at 8-10% p.a.over the next few years.

The growth could be high if industrial activity picks up as the industrial paint segment is gaining more importance.

Asian paints offer the best exposure being the market leader and an innovative marketing company.

Paint can be broadly classified as decorative and industrial on the basis of the end use. The Indian market is dominated by the decorative segment, which comprise almost 70%of consumption as compared to developed countries where the segment is more dominated.

The ratio is also likely to shift more towards industrial segments, especially with growth in the auto and white goods industry.


The unorganized sector has historically been dominant due to high excise structure. Over the last five years, the excise rate has come down drastically from 40% to 18% resulting in erosion of unorganized sector share.

The paint industry is characterized by low fixed asset intensity (As essentially it is mixing process). But the high working capital intensity (as the number of shades is large and there is seasonally in demand). The main investments are in brand building and distribution infrastructure.

New trends are emerging in technology and marketing. Introduction of tinting machines at the dealer/retailer level will bring down working capital costs. Also new technology is being used for increasing the utility and life span of paints.

Indian industry will have to keep pace with global technology changes to maintain their competitiveness. Already, a few alliances have entered into and the number is likely to increase in future.

Hey sunanda, it is very good news that paint industry in India is growing and it is estimated that its growth will be 4-8% p.a. I am also sharing a document where you will find the comprehensive analysis and study report of the Paint industry in India.
 

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