Paint Industry needs crucial support! but why? Are the paint businesses dying? It is observed that there are several needs and necessary initiatives that should be taken for the paint industry businesses. Here we will discuss the problems that the paint industry is facing right now related to trade, GST and Tax advocacy, MSME needs, and dealer’s pain points. Also, we will explore the future of paint businesses.
As paint dealers demand major initiatives, the Indian Paint Trade Association (IPTA) is one of the leading paint associations working for the welfare of paint businesses. It was initially worked under the name Uttar Pradesh Vyapar Mandal. The Association is working across 14 states in India.
Challenges in the Paint Industry
These are several challenges for the paint business including profit margins, taxation and compliance, and quality assurance. The discussion addressed several challenges faced by dealers and manufacturers:
- Profit Margins: Dealers emphasized the need for better profit margins and fewer competitors in local markets to maintain profitability.
- Taxation and Compliance: Multiple tax slabs and complex GST regulations remain a hurdle, especially for small-scale manufacturers (MSMEs).
- Quality Assurance: Dealers are increasingly prioritizing quality, requiring manufacturers to ensure consistent product standards.
Fostering MSME Growth in the Paint Sector
Discussing the major & necessary support that MSMEs need right now are quality certification, and exclusive tie-ups for paint dealers with manufacturers.
- Dealers Collaboration with Manufacturers: Many dealers expressed interest in exclusive tie-ups with manufacturers to ensure better margins and less market competition.
- Quality Certification: IPTA could introduce a certification program to endorse MSMEs that meet quality and performance standards. Such a program could enhance trust and open more opportunities for small-scale manufacturers.
- Participation in Exhibitions & Networking: The active participation of MSMEs in trade fairs can showcase their products and help them connect with dealers nationwide.
Now comes the future of the Paint Industry, and what this industry needs to empower paint dealers is to unlock more growth opportunities. It will enable small paint businesses and dealers to scale and make good margins. We need to focus on the margins & profitability of dealers and provide a comprehensive platform for networking and collaboration.