The Indian paint industry has been growing at an average 15% per annum over the last decade. Growth has been consistent with the Indian GDP growth rate and in some years the industry has grown at a rate of 1.5 to 2 times higher than that of GDP growth. Construction remains the key growth sector and is driving demand for decorative and protective coatings. The sector accounts for nearly 45% of the total national investment in infrastructure and the trend is expected to continue in the future.
Many paint companies are expanding their operations in India but the rapid growth of the paint industry, with billions of rupees being invested in enhancing capacities, is causing concern among environmentalists.
India is also the second largest paint market in Asia with an annual demand of over two million tonnes, again second only to China.
Indian paints demand has been estimated at 2,205,000 tonnes in 2011. Decorative coatings account for nearly 78% of the market in terms of volume and about 70% in value, while automotive coatings, both OEM and refinishes, dominate the industrial segment, followed by high performance protective coatings and powder coatings.
Future market growth is expected to be in the order of 11% p.a. overall, with individual segments displaying a broader range of growth rates across the two main segments. Demand for coatings is expected to reach 3,723,500 tonnes in 2016, mainly due to impressive growth in the construction, automotive and electronic appliance (white goods) industries.
Coatings industry paints big picture with pick up in rural demand
With rising input costs and slowing industrial growth impacting uptake of paints in India, industry is banking on rural market to paint a bright picture.
Painting a bright future
According to AC Nielsen, the per capita paint consumption in India is expected to touch 4 kg in 2016 from current 2.57 kg. “Considering the current economic situation in the country, it is safe to predict a 9-10% growth in the paint industry over the next 5 years. The paint industry is expected to be worth Rs 50,000 crore in the next five years which is a very positive development. Some of the major reasons for the rise in the paint industry are increased levels of income and education, increasing urbanisation, development of the rural market and various launches of many innovative products. Moreover, due to the low per capita consumption of paints in India... Read more: www.business-standard.com
INDIAN CHEMICAL INDUSTRY
Chemical industry likely to reach $224 bn in FY17 17 Mar, 2016, 07.10PM
Untry's chemical industry has tremendous scope to increase share in global trade and is expected to reach $224 billion in next financial year from $144 billion at present, a senior government official said today. Read more: Economic Times
Indian chemical companies can acquire struggling South African firms 12 Feb, 2016, 06.20PM
JOHANNESBURG: Indian chemical companies have an opportunity to acquire South African firms which are struggling due to the current global economic downturn, an industry expert said.
"South Africa has long been the leader in chemical production for the continent, but producers are currently facing poor domestic demand and a volatile exchange rate that hampers exports, which has led to a decline in output since 2013," Debajit Shome, Director of multinational Union Colours said. Read more: indiatimes.com
China's decline in specialty chemicals business to benefit India Mar 25, 2016, 04.21 AM
MUMBAI: Shares of Indian companies in the specialty chemicals business could be potential winners as the domestic industry could be beneficiaries of a potential decline in this business in China.
The Indian market is very small, barely 1-2% of the global market, which is growing at a rapid pace, said a report by Ambit Capital.
The global specialty chemicals market is likely to expand by 5.2% on a compounded basis from 2013-2018, and is estimated to jump to $761 billion by 2018 from $619 billion in 2014, said the report. "Business is shifting to India from China," said Dhiraj Sachdev, vicepresident, HSBC Asset Management. Read more at: economictimes.indiatimes.com
Paints Sector Analysis Report
For any queries pertaining to participation, space booking, visiting, or sponsorship, please feel free to contact Mr. Ragunath +91 97890 95249.. click here to