The paint sector has seen significant growth over the years. The industry can double its growth by the Financial year 2027. The reason behind this is new competitors and the increasing innovations in the segment. There will be an increase of 7.8 billion liters per annum. Paints add beauty to a house. With the new household projects, the demand often rises. Apart from that, the short-term demand will also increase in a few months with the coming of the festive season. Let us explore more about the paint industry growth below.
Paint Sector To Grow Double By FY27
The paint sector will double its growth over the next three years. The main reason behind the increase is the new investments and the increasing number of new players. These will add more variety and scope along with expanding deeper in the country. Thus, the Paint sector’s production capacity will reach 7.8 billion liters annually by FY 27. There will be new investments in the industry along with some new players. According to sources, there will be investment worth Rs. 19,000 crores. Some new players will also enter the industry.
Birla also entered the paint sector as Birla Opus. The question arises what impact will it have on the industry apart from its growth? We all know that the production capacity will increase to double. However, adding new competitors will lead to a decrease in profitability. Every competitor will have a lower share of the market. Thus, it further leads to saturation until the market keeps updating itself.
The production capacity will increase this year as well. According to the sources, it will increase by 2.4 bpla. The new players entering the industry with big investments will increase the production capacity by 1.3 blpa. The paints have a decorative segment which brings the majority of sales in the industry. The new players are focusing on the same. The industry is expected to have good growth for the current year as well. It will rise with 10-15% annual growth.
As the new players enter the market, the competition is increasing. Not only the competition, the demand will also increase. However, one keeping the best prices will get the most profit. Thus, the companies have to reframe their prices for the best results. This might affect the quality of the product in case the profit margin decreases further. However, the increase in revenues will balance it out. The market is going to expand further in the coming years.