Page 19 - CV Aug-Sep 2023 Issue

INDIAN PAINTS & COATINGS INDUSTRY ESTIMATED TO GROW
TO RS ONE LAKH CRORE IN NEXT 5 YEARS

he size of the Indian paints & companies such as Grasim Industries, automotive, infrastructure, machinery and
coatings industry is estimated to Pidilite, and JSW have entered into the equipment, functional and domestic
Tgrow to Rs 1 lakh crore in the segment and are competing with appliances, packaging, etc," it added.
next five years from the present Rs established makers such as Asian Paints, On future outlook, Akzo Nobel India
62,000 crore, said Akzo Nobel India. Berger Paints, Kansai Nerolac and Akzo which operates in the industry through
Besides, the margin for the paints & Nobel India, which collectively control the Dulux brand said the paints &
coatings industry will improve as in FY23, nearly 3/4th of the market. "The size of coatings industry's prospects are
it witnessed softening of raw material the industry is estimated to grow from Rs 'intricately connected to the overall
prices from their previous highs, said the 62,000 crores to Rs 1 lakh crore in the growth of the country's economy', which
latest annual report of Akzo Nobel India, next five years," it said. is influenced by several factors including
a leading player in the segment. income levels, industrial production, and
"As raw materials account for The industry is divided into two infrastructure development.
approximately 55-60 per cent of the input categories - architectural segment and
costs, price corrections in crude oil and industrial segment. The architectural "While the industry faces potential risks
other essential components resulted in segment dominates the industry as its stemming from fluctuating crude prices,
improved margins for the industry," it said accounts for around 69 per cent of the macro-economic environment, and
The industry has emerged as an paint consumption on a volume basis. inflationary pressures, the overall outlook
attractive sector, by the entry of several This segment primarily caters to remains promising. This optimism is
new players in recent times, which are residential, commercial, and institutional fuelled by India's projected medium-term
actively investing in infrastructure, constructions, as well as repainting and growth rate of 6-7 per cent, which sets a
technology, and marketing to establish renovation projects. favourable backdrop for the industry's
their presence and capture a share of the While rest 31 per cent comes from the expansion and development," it said
market, it said. industrial segment, which is witnessing a According to Akzo Nobel India, by
growing share due to multiple factors. focusing on innovation, customer-centric
"This heightened competition has strategies, and leveraging its strengths, it
prompted existing players to further "The industrial sector's robust growth, is well positioned to capitalise on the
bolster their capabilities and differentiate coupled with strong fundamentals of anticipated growth opportunities and
themselves in order to maintain their consumer durables, automobiles, and overcome potential challenges. For the
market position, leading to a surge in allied industries, has fuelled the demand financial year ending on March 31, 2023,
investment activity within the industry," it for industrial coatings. These coatings Akzo Nobel India's revenue from
added. In the last few years, several find applications in sectors viz. operations was Rs 3,802.1 crore.

CONSTRUCTION VISION 17 AUGUST - SEPTEMBER 2023