Indian Paints & Coatings Industry to become worth Rs 1 lakh Crore In Next 5 Years

Akzo Nobel India, a leading player in the paints and coatings industry, has stated in its latest annual report that the Indian paints and coatings industry is projected to expand to Rs 1 lakh crore in the next five years, compared to its current value of Rs 62,000 crore. The report also mentions that the industry witnessed a decline in raw material prices from their previous highs, resulting in improved margins for the sector. Raw materials typically account for around 55-60% of the input costs in this industry. Read More Business News on our website.

How Indian Paints & Coatings Industry to become worth Rs 1 lakh Crore In Next 5 Years

The entry of several new players in recent times has made the paints and coatings sector an attractive market. These new entrants are actively investing in infrastructure, technology, and marketing to establish their presence and gain a share of the market. This increased competition has prompted existing players to strengthen their capabilities and differentiate themselves in order to maintain their market position. As a result, there has been a surge in investment activity within the industry.

In the past few years, companies like Grasim Industries, Pidilite, and JSW have entered the paints and coatings segment, challenging established manufacturers such as Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India. Together, these established players control nearly three-fourths of the market.

The architectural segment holds a dominant position in the paint industry, accounting for approximately 69 percent of paint consumption in terms of volume. This segment primarily serves the needs of residential, commercial, and institutional construction projects, as well as repainting and renovation endeavors.

The remaining 31 percent of paint consumption comes from the industrial segment, which is experiencing a growing share due to various factors. The industrial sector’s strong growth, coupled with the robust fundamentals of consumer durables, automobiles, and related industries, has driven the demand for industrial coatings. These coatings find applications in sectors such as automotive, infrastructure, machinery and equipment, functional and domestic appliances, packaging, and more.

Regarding the future outlook, Akzo Nobel India, operating in the industry under the Dulux brand, stated that the prospects of the paints and coatings industry are closely linked to the overall growth of the country’s economy. This growth is influenced by several factors, including income levels, industrial production, and infrastructure development.

Despite potential risks associated with fluctuating crude prices, the macroeconomic environment, and inflationary pressures, the overall outlook for the industry remains promising. This optimism stems from India’s projected medium-term growth rate of 6-7 percent, which provides a favorable backdrop for the expansion and development of the industry. As of the financial year ending on March 31, 2023, Akzo Nobel India reported revenue from operations amounting to Rs 3,802.1 crore.