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.

Indian Paint and Coatings Market Size (INR Billion)

CAGR : 23.58%
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.

620
406

The Indian
rural paint and coatings
market witnessed a growth
of 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.

FY2014
FY2017F

Demand and Supply Side Dynamics

Indian Paint and Coatings

Market Segmentation

Indian Paint and Coatings

Market Share

FY2014: INR406 Billion

FY2014: INR406 Billion

Unorganized
Industries
(INR110 Billion)

35%
Decorative
(INR296 Billion)

65%
Organized
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 to
witness a CAGR of
more than 18%
during FY2015*.

Some of the leading players in the

organized sector comprise Asian
Paints, 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

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, and
upcoming new cities development project,
would boost growth in the paint and coatings
market in India.

Interesting Facts
During FY2014
The share of the Indian paint industry in the
global paint market was 4.6%;
In the next five years,
the Indian paint industry
is estimated to rise at a
rate of 1.5 2 times in
the GDP.

The per capita consumption of paint in India

was 4 kg, below the global average
of 1013 kg;
In terms of volume, the Indian paint and
coatings market accounted for 15% of the
Asia-Pacific market, which comprised
nearly 44% 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

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.
Compiled by: Mansi Choksi
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