The Indian paint industry is undergoing a major capacity expansion, with planned capital expenditures (capex) amounting to ₹12,000 crore for FY2023-24. This figure is a significant jump from the cumulative capex of ₹7,000 crore seen in the preceding four years.
Capacity Expansion Across Key Players
Major players like Asian Paints, Berger Paints, and Grasim’s Birla Opus are ramping up production capacity. New production facilities are being set up in strategic locations to ensure proximity to key markets and reduce logistics costs.
-Asian Paints: The company is expanding its manufacturing footprint in Gujarat and Mysuru to cater to rising domestic and export demand.
– Berger Paints: The company is diversifying its product range by increasing its capacity for water-based paints, emulsions, and specialized coatings.
Focus on Backward Integration and Diversification
To reduce dependency on raw material imports, several paint companies are focusing on backward integration. For instance, Grasim has announced plans to manufacture key inputs in-house to reduce supply chain risks.
Additionally, many companies are entering adjacent segments such as adhesives, construction chemicals, and waterproofing solutions. These value-added products have higher margins and complement the core paint business.
With a total capex of ₹12,000 crore, the Indian paint industry is clearly on a growth trajectory, aiming for higher production capacity, backward integration, and product diversification.