The Indian paint industry is poised for substantial growth, with revenue expected to increase by 10-12% in the financial year 2024. This optimistic outlook is fueled by rising demand for both decorative and industrial paints. As the economy recovers and infrastructure development accelerates, the sector is set to witness significant expansion.
Decorative Paints: The Growth Engine
The decorative paint segment, which contributes about 80% of the total market, is anticipated to see a revenue increase of 11-12% in FY2024. Key factors driving this growth include a surge in home renovation projects, increased real estate activity, and heightened consumer preference for premium paint finishes. Festival seasons and marriage-related renovations have further propelled demand.
Companies such as Asian Paints, Berger Paints, and Kansai Nerolac have reported an uptick in demand for high-end and eco-friendly paints. Innovations in odor-free, quick-drying, and anti-bacterial paints have also captured consumer attention, thereby boosting sales.
Industrial Paints: Steady Growth Through Auto and Infrastructure Sectors
The industrial paints segment, though smaller in comparison to decorative paints, is projected to grow by 8-9% in FY2024. Growth in this segment is primarily being driven by an increase in automotive production and rising government investments in infrastructure development.
The automotive sector’s revival after a period of semiconductor shortages has led to a surge in demand for OEM (original equipment manufacturer) coatings. Additionally, large-scale government projects, such as highways, airports, and smart cities, are contributing to higher demand for industrial coatings.
With industry leaders focusing on product innovation and sustainability, the revenue growth of 10-12% for FY2024 seems achievable.