The sharp depreciation of the Indian rupee is adding a fresh layer of cost pressure on the paints and coatings industry. With a high dependency on imported raw materials like titanium dioxide, resins, and specialty chemicals, Indian manufacturers are now battling inflated import bills—impacting pricing, margins, and production plans.
As the Indian rupee weakens against the US dollar, coatings manufacturers are facing a double blow—volatile global raw material prices and surging import costs. Inputs like titanium dioxide, epoxy resins, and additives, which are largely imported from China, Europe, and the Middle East, have become significantly more expensive, directly affecting cost structures.
In an industry where raw materials account for 50–60% of total production cost, even a small shift in currency value can trigger a substantial ripple effect. Surplus manufacturers are being forced to either raise product prices, affecting the end consumer, and absorb cost which compresses profit margins.
Leading paint companies like Berger Paints, Kansai Nerolac, and Indigo Paints have already initiated or announced upward revisions in product prices.
Premium segments like automotive coatings and protective industrial paints are the most affected due to higher dependence on imported specialty chemicals.
Rising import bills are impacting cash flow cycles, forcing manufacturers to revise payment terms with dealers or delay capex plans.
Smaller MSMEs in the industrial coatings segment are struggling to keep up with raw material advances and freight charges.
IMPACT ON IMPORT AND EXPORT COMPETITIVENESS— While a weak rupee technically makes Indian exports cheaper, the benefit is offset by rising input costs and shipping delays, especially for value-added formulations.
Rupee has depreciated ~8–10% YoY against USD (as of June 2025).
Raw material imports form 45–65% of cost for most Indian paint companies.
Freight costs on key chemical routes (e.g., China–India) are up 15–20% YoY.