8/10/2019 Paint & Coating Market in India Up for Exciting Times Ahead with a CAGR of 24% | An Aranca Infographic

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Compiled by: Mansi Choksi

Arancas Views

The Indian paint and coatings market is anticipated to expand in the coming years owing to

increasing infrastructure and real estate development. Furthermore, new innovative products

such as paint with weather protection, low volatile organic content, and eco-friendly are believed

to drive the market. In rural India, the demand for paint and coatings is expected to rise with

increase in disposable income and aspirations for an improved standard of living. As a result ,

the rural market is forecasted to become a target market for many industry players in the

coming year.

Paint and Coatings Market

Turning India Colorful

The paint and coatings market in India is expected to witness a

CAGR of 23.58% between FY2014* and FY2017*, mainly driven by

a surge in the decorative segment and increased rural demand.

FY2014

406

620

The high

growth is mainly

driven by increased

disposable income,

rising educational levels,

increasing demand for

infrastructure, growing

urbanization, and improved

flow of new products

in the market.

FY2017F

The Indian

rural paint and coatings

market witnessed a growthof around 20% during

FY2014. With increasing rural

development, the demand

for paint and coatings is

expected to get a

further boost in the

coming years.

CAGR : 23.58%

Indian Paint and Coatings Market Size (INR Billion)

Demand and Supply Side Dynamics

65%

35%

Some of the leading players in the

organized sector comprise AsianPaints, Kansai Nerolac, Berger Paints

and ICI. The decorative segment is

led by Asian Paints followed by

Berger Paints. In the industrial

segment, Kansai Nerolac

dominates the space.

In the unorganized sector, there are

around 2,500 companies with

units having small-and

medium-sized paint

manufacturing plants.

Key Trends and Opportunities

Industries

(INR110 Billion)

Decorative(INR296 Billion)

In India, a large

proportion of demand

for decorative paints

comes from households

during festivals such

as Dusherra, Diwali, Onam,

and Christmas/New Year.

The demand for decorative

paint is anticipated towitness a CAGR of

more than 18%

during FY2015*.

Unorganized

Indian Paint and Coatings

Market Segmentation

Indian Paint and Coatings

Market Share

Organized

FY2014: INR406 Billion

Low share of the Indian paint industry in the

global and Asia-Pacific market, accompanied

with low per capita consumption,depicts that

the market is not saturated and offers lucrative

opportunities for expansion and growth

An increasing population of young and middle

class in India with aspirations for improved

standard of living has led to changing

spending habits, especially in the countrys

rural areas.

In recent times, paint companies have been

introducing premium products with features

such as weather protection, low volatile

organic content, and eco-friendly production.

Government reforms in real estate and

infrastructure sectors, such as easing of foreign

direct investment (FDI) norms in real estate,

raising exemption levels for housing loans, andupcoming new cities development project,

would boost growth in the paint and coatings

market in India.

Interesting Facts

In the next five years,

theIndian paint industry

is estimated to rise at a

rate of1.5 2times in

theGDP.

During FY2014

The share of the Indian paint industry in the

global paint market was4.6%;

The per capita consumption of paint in India

was4 kg, below the global average

of1013 kg;

In terms of volume, the Indian paint and

coatings market accounted for 15% of the

Asia-Pacific market, which comprised

nearly44%of the total global market.

*FY2014 implies financial year 201314, FY2015 imples financial year 2014-2015 and FY2017 implies financial

year 201617

Source: ASSOCHAM, India Chem Gujrat report, FICCI, Oct 2013; Berger Paints India Profile, Tata Securities, April 2012;

AkzoNobel Investor Presentation, Mar 2013

FY2014: INR406 Billion