The earliest Paint mill in India, Shalimar Paints, Color & A ; Varnish Company ( a Pinchin Johnson unit ) , was established in 1902 in Calcutta. After World War II, imports stopped due to war, so the domestic market became sole modesty of the domestic industry. European makers saw the advantages of puting in India. Thus, a batch of foreign pigment companies came into India- Goodlass Wall ( 1918 ) , Elphant Oil Mills ( 1917 ) in Bombay, and British Paints, Jenson & A ; Nicholson and Macfarlances in Calcutta. Macfarlanes was brought over by the Poddars and became a wholly Indian company, while the other three: Shalimar Paints ( Pinchin Johnson ) , British Paints and Jenson Nicholson continued as British operated units.
After independency, Paint industry developed in India. Asiatic Paints, a wholly Indian unit which started on a really little graduated table, is today the largest unit in India and manner in front of the 2nd largest, Kansai ( Goodlass ) Nerolac Paints Ltd. , once a unit of Goodlass Wall ( UK ) . Besides these, legion other Indian pigment mills were set up in Calcutta, Kanpur and Mumbai. There was a growing in pigment industry. The turnover grew from `200mn in 1950 to over `14000mn in 1990-91.
Paint was considered as a luxury point, so authorities drastically increased responsibilities on pigments. Due to this the pigment industry started incurring losingss. There was a negative growing rate of 20 % in 1991-92, and the following twelvemonth registered a growing of merely 2 % . Therefore, the policies were liberalized and the responsibilities on pigments were reduced because of the realisation that pigment is non a luxury trade good. Thus, paint demand increased from 8 % in 1993-94 to 12 % in 1995-96.
Rapid industrialisation, betterments in the substructure such as conveyance, energy and communicating has farther led to the growing of the pigment industry. Due to Government ‘s broad policy of engineering import, there was enlargement in automotive and consumer lasting sections, conveying in a host of autochthonal developments every bit good as new engineering.
Addition in low-cost lodging coupled with higher disposable income is likely to trip
consumer ‘s disposition towards sophisticated colorss and textures, therefore taking to higher demand of emulsion pigments. However, such better quality pigments are likely to detain the repainting rhythm thereby impacting the repainting demand.
CURRENT Scenario
The entire market portion of Indian Paint industry is US $ 1400 million.
Organized sector – 55 %
Large participants in organized sector and their market portion value in cosmetic sections is as follows:
Asiatic Paints 37 % A·
Kansai Nerolac 15.9 % A·
Berger Paints 13.8 % A·
ICI 11 % A·
Jenson & A ; Nicholson 5.7 % A·
Shalimar 4 % A·
Others 12 %
Unorganized sector – 45 %
It has about 2500 units.
The market section is divided into two sectors.A·
Architectural – 70 % A·
Industrial – 30 %
The entire volume of the market is 600,000 Meitnerium
Environment 2009-10
Economic activity improved on history of monolithic authorities stimulations globally, driving ingestion
Indian Economy performed better than expected
Real GDP growing expected to be about 7.5 % , despite hapless monsoon
Retail demand good in many classs – FMCG, Durables, Automotive etc.
Rupee was on an uptrend, appreciated from degrees of Rs. 51 to Rs. 45 during the
twelvemonth
Decisive authorization in the national general elections besides helped in conveying about
political stableness and taking uncertainness
However, higher rising prices on the dorsum of rise in nutrient monetary values, is an country of concern
Petroleum monetary values averaged about USD 70 per barrel
Paint Industry – 2009-10
India: Demand Buoyant
Demand for Cosmetic pigments was really good throughout the twelvemonth
Rural and little town demand significantly better than big towns
Construction activity revived and increased capex spend across sectors
Industrial pigments grew good due to growing in automotive and lasting sections
International: A assorted bag
Egypt did non hold a important lag ; good resurgence
Caribbean economic system contracted impacting Paint demand
UAE impacted with utmost fiscal crisis & A ; liquidness crunch
South Asia on the whole had good demand
Decoratives Business – Bharat
Demand Conditionss
Retail Demand was really good throughout the twelvemonth
Improvement in merchandise mix
Interior and exterior emulsions continued to make good
Paint companies are expecting a higher demand growing with lifting higher GDP, Higher disposable incomes and better life styles.
The rise in demand for past four old ages is shown below:
Entire Turnover for the twelvemonth 2009-10 is ` 11082Cr.
Net Net income: ` 1063 Chromium
Foreign Players
Over the last few old ages, planetary participants like Akzo Nobel ( Netherlands ) , Sherwin Williams
( USA ) , Nippon Paint ( Japan ) and Jotun ( Norway ) have set up their stores in India. The entryway of these participants is non likely to impact established participants in the close term, as it requires considerable clip to understand Indian market every bit good as to fit the graduated table, range and trade name equity that is presently being enjoyed by the bing participants.
However, serious attempts are being made by the new participants to capture the market portion.
Sherwin Williams has acquired domestic cosmetic pigments company Nitco Paints, while Akzo Nobel has taken over ICI Paints and is presently reconstituting its full value concatenation. Nippon is besides bit by bit increasing its presence in southern Indian markets and is be aftering to tap western markets every bit good. Therefore, over long-run, the intense competition will take its toll on operating borders of the participants and the focal point is likely to switch towards be optimization instead than monetary value addition.
