New Delhi: India’s paint industry is bracing for heightened competition even as companies remain optimistic about demand recovery and volume growth in the coming quarters, supported by infrastructure activity and steady consumption trends.
Executives from leading companies such as Asian Paints, Kansai Nerolac Paints and Berger Paints have indicated that the sector is likely to see improved momentum in the fourth quarter after a relatively weak start to the festive season. A shorter festive period and an extended monsoon had dampened sales earlier in the fiscal year.
The demand trends began improving from November and December, driven by sustained infrastructure development and stable consumer spending in housing and maintenance activities. Decorative paints remain the largest segment of the industry, accounting for the majority of demand in the domestic market.
However, competition in the sector has intensified with new entrants expanding distribution networks, investing heavily in marketing and offering aggressive pricing strategies. This has increased pressure on pricing power and forced established players to focus on brand strength, distribution expansion and cost optimisation to defend market share.
The industry is entering a volume-led growth phase, where companies may see rising sales volumes but face limited ability to increase prices due to competitive pressures. Despite these headwinds, demand from infrastructure projects, real estate development and the automotive sector is expected to support steady long-term growth.
Industry participants remain cautiously optimistic that improving consumption patterns and continued government spending on infrastructure will help sustain growth momentum for paint manufacturers in the coming quarters.