Indian paint industry may cross Rs 62000 cr by 2016-17
Updated: Sep 05, 2014 01:34:07pm
New Delhi, Sept 5 (KNN) The increasing demand for decorative paints due to urbanisation is likely to move domestic paint industry to about Rs 62,000 crore by 2016.
“Indian paint industry is likely to surge from the current level of about Rs 40,600 crore to about Rs 62,000 crore by 2016 witnessing a double-digit compound annual growth rate (CAGR) of about 20 per cent,” said a study report from the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
According to the report on the study “Indian paint Industry: 2014”, the rural sector has a major share of the decorative paints segment.
“The factors that have fuelled the paint industry's growth are the rise in disposable income and education, increasing urbanization, development of the rural market and various launches of many innovative products,” it said.
The report said Asian Paints, Kansai Nerolac Paints, Berger Paints, AkzoNobel, Nippon Paints and Shalimar Paints are top producers of paint.
The rural market has grown at a rate of around 20 per cent a year (in financial year 2014). There has been an increase in sales outside metros, as rural India's incremental consumption expenditure is witnessing a handsome growth, it said.
ASSOCHAM Secretary General DS Rawat said the demand for paint for household paintings, architectural and other display products also increases during festive season.
“The demand for paint increases during festive season like Dusherra, Diwali, Onam, Christmas /New Year, as compared to other periods”, said Rawat.
“The paint industry has seen a gradual shift in the preferences of people from the traditional white wash to higher quality paints like emulsions and enamel paints,” he said.
The paper said the decorative paint market has been further segmented into emulsions, enamel, distemper and cement paints. Similarly, the industrial paint market is also segmented into automotive coating, high performance coating, powder coating and coil coating.
One of the major reasons for the rise in the paint industry is awareness about environment. Further, increase in disposable income is leading to demand for premium paints, it added. (KNN/ST)
“Indian paint industry is likely to surge from the current level of about Rs 40,600 crore to about Rs 62,000 crore by 2016 witnessing a double-digit compound annual growth rate (CAGR) of about 20 per cent,” said a study report from the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
According to the report on the study “Indian paint Industry: 2014”, the rural sector has a major share of the decorative paints segment.
“The factors that have fuelled the paint industry's growth are the rise in disposable income and education, increasing urbanization, development of the rural market and various launches of many innovative products,” it said.
The report said Asian Paints, Kansai Nerolac Paints, Berger Paints, AkzoNobel, Nippon Paints and Shalimar Paints are top producers of paint.
The rural market has grown at a rate of around 20 per cent a year (in financial year 2014). There has been an increase in sales outside metros, as rural India's incremental consumption expenditure is witnessing a handsome growth, it said.
ASSOCHAM Secretary General DS Rawat said the demand for paint for household paintings, architectural and other display products also increases during festive season.
“The demand for paint increases during festive season like Dusherra, Diwali, Onam, Christmas /New Year, as compared to other periods”, said Rawat.
“The paint industry has seen a gradual shift in the preferences of people from the traditional white wash to higher quality paints like emulsions and enamel paints,” he said.
The paper said the decorative paint market has been further segmented into emulsions, enamel, distemper and cement paints. Similarly, the industrial paint market is also segmented into automotive coating, high performance coating, powder coating and coil coating.
One of the major reasons for the rise in the paint industry is awareness about environment. Further, increase in disposable income is leading to demand for premium paints, it added. (KNN/ST)
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