Indian paints & coatings industry projected to reach Rs 1 tn in 5 years
Paint

Indian paints & coatings industry projected to reach Rs 1 tn in 5 years

According to Akzo Nobel India, the Indian paints & coatings industry is expected to expand to Rs 1 lakh crore in the next five years, up from its current value of Rs 620 billion. This information was revealed by Akzo Nobel India in a recent statement.

Furthermore, the latest annual report of Akzo Nobel India, a prominent player in the sector, stated that the margin for the paints & coatings industry would improve. In FY23, the industry experienced a decline in raw material prices compared to their previous highs. The report mentioned that this development resulted in improved margins for the industry, considering that raw materials make up approximately 55-60% of the input costs.

The report also highlighted that the entry of several new players into the industry has made it an attractive sector. These newcomers are actively investing in infrastructure, technology, and marketing to establish their presence and gain a market share. The report stated that this increased competition has compelled existing players to enhance their capabilities and differentiate themselves in order to maintain their market position. As a result, there has been a surge in investment activity within the industry.

Over the past few years, companies such as Grasim Industries, Pidilite, and JSW have entered the paints & coatings segment, competing with established manufacturers such as Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India. These companies collectively control nearly three-fourths of the market.

The report mentioned that the industry's size is estimated to grow from Rs 620 billion to Rs 1 trillion over the next five years.

The paints & coatings industry is divided into two categories: the architectural segment and the industrial segment. The architectural segment dominates the industry, accounting for approximately 69% of paint consumption based on volume. This segment primarily serves residential, commercial, and institutional construction projects, as well as repainting and renovation projects.

The remaining 31% of paint consumption comes from the industrial segment, which is experiencing a growing share due to various factors.

The report explained that the industrial sector's robust growth, combined with the strong fundamentals of consumer durables, automobiles, and allied industries, has driven the demand for industrial coatings. These coatings find applications in sectors such as automotive, infrastructure, machinery and equipment, functional and domestic appliances, and packaging.

Regarding the future outlook, Akzo Nobel India, operating in the industry through the Dulux brand, stated that the prospects of the paints & coatings industry are closely tied to the overall growth of the country's economy. Several factors, including income levels, industrial production, and infrastructure development, influence the industry's prospects.

Also read:
SECL to develop closed coal mine in Korba District as Eco-Tourism Spot
NTPC's captive coal mines production surges to 8.48 MMT in Apr-Jun


"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

According to Akzo Nobel India, the Indian paints & coatings industry is expected to expand to Rs 1 lakh crore in the next five years, up from its current value of Rs 620 billion. This information was revealed by Akzo Nobel India in a recent statement. Furthermore, the latest annual report of Akzo Nobel India, a prominent player in the sector, stated that the margin for the paints & coatings industry would improve. In FY23, the industry experienced a decline in raw material prices compared to their previous highs. The report mentioned that this development resulted in improved margins for the industry, considering that raw materials make up approximately 55-60% of the input costs. The report also highlighted that the entry of several new players into the industry has made it an attractive sector. These newcomers are actively investing in infrastructure, technology, and marketing to establish their presence and gain a market share. The report stated that this increased competition has compelled existing players to enhance their capabilities and differentiate themselves in order to maintain their market position. As a result, there has been a surge in investment activity within the industry. Over the past few years, companies such as Grasim Industries, Pidilite, and JSW have entered the paints & coatings segment, competing with established manufacturers such as Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India. These companies collectively control nearly three-fourths of the market. The report mentioned that the industry's size is estimated to grow from Rs 620 billion to Rs 1 trillion over the next five years. The paints & coatings industry is divided into two categories: the architectural segment and the industrial segment. The architectural segment dominates the industry, accounting for approximately 69% of paint consumption based on volume. This segment primarily serves residential, commercial, and institutional construction projects, as well as repainting and renovation projects. The remaining 31% of paint consumption comes from the industrial segment, which is experiencing a growing share due to various factors. The report explained that the industrial sector's robust growth, combined with the strong fundamentals of consumer durables, automobiles, and allied industries, has driven the demand for industrial coatings. These coatings find applications in sectors such as automotive, infrastructure, machinery and equipment, functional and domestic appliances, and packaging. Regarding the future outlook, Akzo Nobel India, operating in the industry through the Dulux brand, stated that the prospects of the paints & coatings industry are closely tied to the overall growth of the country's economy. Several factors, including income levels, industrial production, and infrastructure development, influence the industry's prospects. Also read: SECL to develop closed coal mine in Korba District as Eco-Tourism Spot NTPC's captive coal mines production surges to 8.48 MMT in Apr-Jun

Next Story
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement