Akzo Nobel India, a leading paint manufacturing company, projects that the paints and coatings industry in the country will grow to approximately Rs one lakh crore over the next five years. Currently, the industry’s size stands at around Rs 62,000 crore. The segment is diverse, with architectural products dominating at 69% on a volume basis, while the industrial sector makes up the remaining 31%. Read More Business News on our website.
In the fiscal year 2022-23, the paints and coatings industry witnessed positive developments due to a decrease in raw material prices compared to previous highs. Raw materials constitute 55% to 60% of the total input costs, and the industry’s improved margins were a result of price corrections in crude and other essential components. The growth of the paints and coatings industry is closely linked to the overall economic growth,hich is influenced by factors such as income levels and infrastructure development.
Although the industry faces potential risks arising from fluctuating crude prices, macro-economic conditions, and inflationary pressures, the overall outlook remains promising. Akzo Nobel is optimistic about India’s projected medium growth rate of six to seven per cent, which fuels their positive outlook.
The company has identified various key focus areas, which includes margin management by maintaining and expanding current levels, aligning the cost base with market realities, and reducing working capital to improve cash flows.