Paint Industry Information

1. Prakhar Omar
PIBM, Pune
2017-19
prakharomar05
@gmail.com
www.linkedin.com/
in/prakhar-omar-
b24158129
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2. INDUSTRY INFORMATION
India has more than 20,000 outlets in operation, This is the
highest for any country.
The high volume of low cost DISTEMPERS soil in India, which
amounts to approx. 200,000 tones p.a. at an average cost of Rs.
35per kg ($0.88) at the present date.
The market for paints in India is expected to grow at 1.5 times to
2 times GDP rate in the next five years.
Average 13% CAGR during 2013-14 to 2017-18.
The split of the decorative paint market to industrial market is
around 75:25.

3. PAINT PRODUCTS
1. Decorative Paints
 The products under the
decorative finishes can be
limestone coatings, primers,
distempers, cement paints,
matt/ lustre finishes, enamels,
emulsions (first quality), and
premium emulsions.
 The decorative paint market
CAGR of 12.2%
 Decorative paint market size
in the country was Rs.30,385
Cr.
Syn. Enam.
47%
Cement Pts.
14%
Emulsions
4%
Distemper
18%
Automotive
6%
Rine Paints
1%
Powder
Coating
1%
HPC
2%
Gen.
Industrial
7%
Decoretive Paint Prodects

4. 2. Industrial Paints
PAINT PRODUCTS
 The industrial paint market
CAGR of 9%
 The Industrial Paint Rs. 9,915
Cr. in 2016.The per capita
consumption of paint in India
is estimated at 3.34 kg
 Demand for these paints is
relatively price inelastic, but
is prone to business cycles
and depends on industrial and
economic growth.
General
Industrial
42%
Coil
Coating
1%
H P
Coating
12%
Powder
Coating
5%
Automotive
33%
Marine
7%
Industrial Paint Products

5. COMPANY COLLABORATIONS AREA OF
COLLABORATION
Asian Paints PPG Ind. Inc
Sigma Coating
Nippon Paints
Electro Deposition
Primers; High
Performance Coatings
Powder Coatings
Goodlass Kansai Paints Auto & Industrial
Coatings
Berger Paints Herbertsons Gmbh
Valspar Corp Inc
Teodur BV
Auto Coating;
Heavy Duty Coatings
Power Coatings
J&N Herbertsons Gmbh Auto Coating
Ici(india) ICI Plc Auto Refinish
DEMAND OF PAINT COMPANY
Most Indian companies have tied up with or are in the
process of tying up with international paint majors to have
access to the latest technology. A tie-up with a global paint
manufacturer also enables the domestic company to supply
to local customers of its partner.

6. MAJOR PLAYERS OF INDIAN
PAINT INDUSTRY
Asian Paints
53%
Berger
Paints
17%
Kansai
Nerolac
16%
Akzo Nobel
12%
Others
2%
Market Share

7. PEST ANALYSIS OF PAINT INDUSTRY IN INDIA
 India, the largest democratic
country in the world.
 The political situation is more or
less stable in nature.
 Export oriented economy.
Political Factors Economic Factors
 Market based economy
 Second fastest growing economy
in the world.
 India is the third largest in term of
purchasing power
 Introduction of FDI in paint sector.
Social Factor
 India is the second largest
populated economy in the world.
 Rise in price of raw material
 Import of raw material
Technological Factors
 Emerging of IT sector
 Modernization of paint like
(Waterproof Paints, Teflon
Coating, Creating Color Shops
etc.)
 Lead free paints

8. PORTER’S ANALYSIS OF INDIAN PAINT INDUSTRY
Paint market in India is dominated by few players, marking
it difficult for anyone newly entering the industry to compete.
It is estimated that 18-20% of the total raw materials used
in the industry are imported.
Working capital needed is high-causes difficulty to local
players & big firms enjoy economies of scale.
Big players have high brand image & quality products &
good promotional activity to attract customers.
Threat of new entrants is Low
1. THREAT OF NEW ENTRANTS

9. PORTER’S ANALYSES OF INDIAN PAINT INDUSTRY
2. THREAT OF SUBSTITUTES
In rural areas lime wash is used as substitute.
Another alternative for decorative wall paints available today is
wallpaper.
Availability of paint varieties are there.
Buyer propensity to substitute is low.
Relative price performance of Decorative walls is high.
•Availability of substitutes is Low

10. PORTER’S ANALYSES OF INDIAN PAINT INDUSTRY
3. BARGAINING POWER OF SUPPLIERS
Raw material intensive production- over 300 raw materials
make the final product.
Raw material- pigment, binders, additives, solvents etc.
Titanium Dioxide is one of the key pigment used in the
production of paint and is facing a global supply shortage. Thus
supplier of this material has solid bargaining power.
Other raw materials- crude derivatives- have price fluctuations
affecting industry profits.
Bargaining power of suppliers is Medium

11. PORTER’S ANALYSES OF INDIAN PAINT INDUSTRY
4. BARGAINING POWER OF BUYERS
Households and Industrial Users are the main customers of this
industry.
For housing requirements, the buyers are building contractors who
buy in bulk and people who paint their house. Customers are more price
sensitive because for them number of options are available and decision
are made based on quality, price and differencing factors like weather
protection, environment friendly paints.
Industrial segment is low margin high revenue business and buyer of
these segment segments are knowledgeable about their needs.
Therefore, price comparison is done effectively by the customers.
However, The leading Industrial paint suppliers have their expertise in
their favour, which limits the bargaining power of buyers.
Bargaining power of buyers as a whole is Medium

12. PORTER’S ANALYSES OF INDIAN PAINT INDUSTRY
5. COMPETITIVE RIVALRY
About 80% of organized sector contributed by top 3 plyers.
Current market growth rate can provide ample room if
opportunity for all the players of the industry to flourish.
Asian Paints is the only paint company that manufactures
PAN(phthalic anhydride) which is one of the main raw material
for paint industry.
Presence of unorganized sector- can cause competition.
Competitive rivalry is Low

13. Competitive
Rivalry: Low
to Medium
Availability
of
Substitutes:
Low to
medium
Buyer
Power:
Medium
Entry
Barriers:
Low
Supplier
Power:
Medium
PORTER’S ANALYSES OF INDIAN PAINT INDUSTRY

14. FUTURE PROSPECTS OF THE INDUSTRY
Industry will grow with a CAGR of around 14% during 2015-16 to
2019-20.
Industry is expected to reach Rs.70,875 Cr. By 2019-20 from around Rs.
40,300 Cr. in 2014-15.
 The decorative paint market is expected to witness CAGR of 12.7%
The industrial paint market CAGR of 9.5%
The decorative paint market is expected to witness CAGR of 12.7%
The split of the decorative paint market to industrial market is around 50:50

15. THANK
YOU!!