Paint Demands Fall, Birla Opus Takes The Market Share By 7%

The paint industry is witnessing a fall in the market which has an impact on the company’s profitability and revenue. According to the data, April-May predictions state that the demand for the paints will fall. While April and May faced the same scenarios. June can be a game-changer. As the monsoon is arriving, people are looking for waterproofing products. It can also contribute to some increase in the demand for the paint industry. Let us have a look at the upcoming predictions for the paint industry’s growth below.

Why Paint Industry Having Trouble Generating Enough Demand?

The paint market demand is subdued because of several reasons. April and May being a pre-election month, the demand fell for the industry and the majority of the people didn’t pay much attention. However, the monsoon season has led to a lot of issues related to painting on our walls. Thus, waterproofing will help in the maintenance of their walls and paints better. The increase in demand for waterproofing may also lead to an increase in the demand for the paint industry. The wedding season is also not running at the moment which boosts the demand for the paints industry. Thus, the second half of a financial year is mostly filled with wider demand in India because of the festive season and wedding season.

Apart from that, there are several new competitors in the market. The major new competitor is Birla Opus. It is known for its high-quality paint, competitive price, and its Birla Opus tinting Machines. The company is already capturing 7-10% of the areas of sales in the selected areas. Recent research by Elara Capital mentions that the company is already ahead in sales with continuous expansion. The survey took place in Ludhiana, Chandigarh, and Panchkula describes that the distributors and consumers like Birla Opus. Its sales are also increasing.

Birla Opus is currently contributing 2-3% of the sales at the place of the survey. While the major contributor is still Asian Paints with 60-80% of sales. The rest is with Dulux and Nerolac. However, Birla Opus might take Dulux and Nerolac soon with its performance if the companies fail to take an optimum step. However, Asian Paints already announced discounts on its prices. Thus, it led to Asian Paints being less likely to have any effect with the new competitors in the market. However, other players need to pay more attention. Stay tuned for more information.