Page 33 - CV April-May 2019 issue

PAINT INDUSTRY looks at 10%-PLUS GROWTH

in sales in the current fiscal

“Since the reduced GST rate will push up demand, we expect a 10-15% growth in sales this fiscal,” said Mr Mahesh Anand, vice president,
Indian Paint Association.

With GST rate coming down from 28% to 18%, the Indian paint retail and hospitality real estate are growing significantly. The
industry is looking at 10%-plus growth in sales in the current fiscal. housing sector is likely to contribute around 11 percent to the Indian
GDP by 2020,” Mr Anand said.
“Since the reduced GST rate will push up demand, we expect a 10- “Government policies towards housing for all have given a huge
15% growth in sales this fiscal,” said Mr Mahesh Anand, vice boost to this sector. New housing launches in the top 7 cities of India
president, Indian Paint Association, at the 55th annual general increased approximately at the rate of 27% on year on year basis
meeting held in Kolkata on Tuesday. during January to March 2018. Similarly the demand for commercial
and office space has gone up by approximately 23% on a year-on-
“The benefits of lower tax rates should entirely be passed on to year basis during the same period. Therefore, it is expected that the
consumers, but the prices of raw materials and other factors are also housing sector would generate enough opportunities for the growth
important,” he said. of the decorative paint business,” he said.

Mr Anand said the Indian paint industry had been adversely affected Mr Yatish Kumar, CMD of Braithwaite & Co, called for deeper
in June and July 2017 due to reduction in off take by dealers on synergies between the paint industry and the potential buyers,
account of uncertainties and lack of familiarity in GST including the Railways. “With high-speed rail and monorail coming
implementation. up, a lot of opportunities are awaiting the paint industry,” he said.

“Dealers in Tier II and Tier III cities had initiated adoption of digital Mr V S Ram, past president, IPA and CEO, Paints and Coatings Skill
payment during the period. More importantly the rate of GST levied Council, underscored the need for demonstrating the industry's
on paints, i.e. 28 per cent had also put the industry in a challenging conviction in skill development. “A skilled painter is an essential part
situation,” he added. of the product's performance and success. We need to work
towards the future when it is mandated to employ only certified
According to him, the real estate sector, the largest employer after painters,” Mr Ram said.
agriculture, is expected to touch $180 billion by 2020. “Commercial,

31 / CONSTRUCTION VISION / May June 2019