Indian Paint Industry growing at fast pace

The phenomenal growth on the housing sector front, rapid urbanization, availability of easy to secure housing loans all have being the prime drivers of growth in the decorative paint segment, which comprises 70 percent of the $2 billion paint industry in India. An average growth of about 10 percent in the automobile sector contributes 50 percent to the revenues in the industrial paints segment. Industrial paints add 30 percent to the paint industry revenue in India. New developments in roads, ports, etc adds up to the revenues of protective coatings for civil applications.

The size of the Indian industry is around 940 million liters and is valued at approximately $2 billion. The organized sector comprises 54% of the total volume and 65% of the value.

In the last ten years, the industry has grown at a compounded annual growth rate (CAGR) of 12-13%.

Paints can be classified into two segments 1] Decorative Paints 2] Industrial Paints

Decorative Paints are meant for the housing sector. Distemper is affordable and used in the suburban and rural markets. Interestingly, 20 percent of all decorative paints in India are distempers.

Indian paint products are highly in demand in countries of United States, China,, India, United Kingdom, Australia, Pakistan, Hong Kong, Canada etc.

Turning Points in the Paint Industry of India

Being governed by FERA (Foreign Exchange Regulations Act) and MRTP (Monopolies & Restrictive Trade Practices Act), Indian companies were restricted from enhancing their production capacity. With the advent of liberalization these shackles were taken off and the industry expanded.

Indian manufacturers hardly face any threat from foreign players. Most of them have tie-ups with global players in terms of latest technology and markets accessibility. Even reduction of import duty from 40% to 15.3% over the last eight years hasn’t really boosted the growth of this sector

Prominent Destinations to source Paint Products from India Include:

Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat, Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur, Tirupur, Ludhiana, Bhilwara, Erode, Jodhpur, Rajkot, Noida, Panipat, Amritsar, Thane, Shanghai, Pune, Karachi, Vadodara, Kanpur, Madurai, Gurgaon, Hyderabad, Navi Mumbai, Tiruppur, Faridabad, Indore, Ghaziabad, Varanasi, Faisalabad, Alappuzha.