New Delhi: Indian paint companies are optimistic about closing the financial year on a strong note, supported by a recovery in demand in recent months even as the sector continues to face intense competition and pricing pressure.
The demand picked up in November and December, and the momentum is expected to continue into the final quarter of the fiscal year, potentially driving high single-digit volume growth year-on-year for the March quarter.
The positive outlook comes despite a sustained price war in the decorative paints segment, where both established players and new entrants have stepped up discounting and marketing efforts to capture market share. The heightened competition has pressured pricing power across the industry.
Companies such as Asian Paints, Berger Paints and Kansai Nerolac are closely tracking demand trends as they seek to maintain growth momentum amid rising rivalry and evolving consumer preferences in the housing and renovation segments.
The paint industry remains structurally strong due to its link with housing, construction and infrastructure activity. However, companies may need to balance volume growth with profitability as competitive intensity remains elevated.
The sustained demand from repainting activity and new construction could support industry volumes in the near term, helping paint makers end the fiscal year on a stronger footing despite the ongoing price battle in the market.