For the complete report, get in touch with us at : info@netscribes.com The paint industry in India is driven by growth in not only construction activities but also in automotive industry. Media exposure and innovative marketing initiatives by the players have only added to increasing awareness about latest trends prevalent in the sector. Due to increased Government funding for infrastructure, demand for paints both in industrial and decorative segment is set to rise, thereby rendering Indian paint industry to be poised for further growth. The report begins with an overview of the paint industry in India including market size and growth. A clear indication of revenue break-up in terms of different types of paints has also been highlighted. This is followed by a supply chain analysis of the industry following which there is a section on the key constituents of paints. Additionally, the different types of paints available in the Indian market have been covered. This is followed by information regarding the sales and distribution channels adopted by the manufacturers in the country. This section is concluded with an analysis of the market through Porter’s Five Force model. The section on EXIM provides an overview to the imports and exports. It covers the overall imports and exports as well as the segmented share by major countries participating in trade. An analysis of the drivers explains the factors for growth of the market including growth in real estate construction, growth in automotive industry, growth in industrial sector, growth in disposable income, low penetration and increased Government expenditure on infrastructure. India is an emerging economy and with a rising GDP. GDP growth relates to growth in industrial activities and infrastructural developments. Aided with increased Government spending on infrastructure in India, market is optimistic about its impact on the paint industry. For new constructions, paint has become an integral component of the development stage. Another factor boosting the market is the growth in the automotive industry which creates huge demand for industrial paints. Further, with enhanced level of communication in terms of media exposure, awareness about latest trends governing the sector has reached a whole host of consumers. Fulfilling needs to look unique becomes possible with more disposable income at the hands of people which is seen to be on an upward trend. Moreover, low per capita consumption of paints in India provides enough opportunity for further growth in this sector. However, the sector is also facing certain challenges. Factors like rising input prices and stringent environmental regulations pose as a barrier for growth. A section on certain initiatives governing the sector has also been highlighted. Major Government initiatives as well as industry regulations have been detailed which provides the necessary thrust to the sector for its growth. The major trends indentified in th

1. Paint Industry – India
Paint Industry India
September 2011

2. Executive Summary
 Paint industry in India is expected to reach INR X1 in 20‐‐
 The segment has been in a position to sustain downturns despite the global economic recession
Market
 This sector has continuously recorded a growth of X2 times the G1 growth rate of India
 Analysis 1 speaks of conducive conditions available for further growth of the industry
Drivers Challenges
– Growth in real estate construction – Increase in input prices
– Growth in automotive industry
Growth in automotive industry – St i
Stringent environmental regulations
t i t l l ti
Drivers & – Growth in industrial sector
Challenges – Increase in disposable income
– Low penetration
– Increased Government expenditure
on infrastructure
i f t t
 Color experimentation  New trademarks and patents flood the
 Customer participation with value added sector
Trends services  Increasing demand for emulsions
 Environment friendly paint  Small size packs
Major Players
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
PAINT INDUSTRY IN INDIA 2011. PPT 2

3. •Market Overview
•Import‐Export
•Drivers & Challenges
•Drivers & Challenges
•Initiatives
•Trends
•Competition
•Strategic Recommendations
PAINT INDUSTRY IN INDIA 2011. PPT 3

4. Indian paints industry has been successful in registering
double digit growth figures
Paints Industry – Overview Market Size and Growth
• Despite global economic recession, this sector has
INR bn
been able to overcome downturns due to high Q
1,000
1 000
demand 1 and decreasing dependence on demand 2 y%
800
• Indian paints industry is estimated to touch INR X1 600
by 20‐‐
400
 This sector has continuously recorded a growth of Y1 P
200
times the GDP growth rate of India
0
• India ranks below only to country1 and country2 in 20-- 20--
terms of production of paints, while it ranked 2nd
only to country3 in terms of growth rate of
Revenue Breakdown (2010)
production
d
t% Type 1
• Demand for paints is price elastic and is connected s%
Type 2
with X3 and X4 growth
Type 3
• Low Y2 consumption, in comparison to other
r% Type 4
developing nations, creates strong opportunity for p%
Type 5
players in the market
q%
Source:
PAINT INDUSTRY IN INDIA 2011. PPT 4

5. Drivers & Challenges – Summary
Drivers
Growth in real estate construction
Growth in automotive industry
Challenges
Growth in industrial sector Increase in input prices
Increase in disposable income Stringent environmental regulations
Stringent environmental regulations
Low penetration
Increased Government expenditure on
infrastructure
PAINT INDUSTRY IN INDIA 2011. PPT 5

6. Trends – Summary
Colour Experimentation
Customer participation with value added services
Environment friendly paints
Key Trends
`
New trademarks and patents flood the sector
Increasing demand for emulsions
Small size packs
PENSION FUND MARKET IN INDIA 2011.PPT 6

7. Players in the Market (1/9)
Company Snapshot: Company 1
Corporate Information Financial Performance
Headquarters
H d t Place 1, Country 1
Pl 1 C t 1 Revenue
INR bn Profit / Loss INR bn
Founded 19‐‐ 1,500 600
Q 400
Products Product 1, Product 2 1,000 R S
P 200
500
Capacity C1 (20‐‐) 0
0 -200
Key People Person1 – Position1 20-- 20-- 20-- 20--
Business Highlights
Business Highlights
• Has operations in more than ‐‐ countries with an employee strength of ‐‐ people around the world
• It manufactures and markets paint products under X1 brand name in India
• Has registered a Y1% volume CAGR during the period 20
Has registered a Y1% volume CAGR during the period 20‐‐‐‐‐
• Has a network of ‐‐ dealers and has converted more than ‐‐ outlets into centre1 that provides service1 and service2
with a vision to make painting an experience with fun
 Centre1 have reported an average increase of Y2 per cent in footfalls as compared to the other dealerships
p g p p p
• Launched product3, an exterior paint product in Feb 20‐‐
Source:
PAINT INDUSTRY IN INDIA 2011. PPT 7

8. Thank you for the attention
The Paint Industry‐ India report is part of Netscribes’ Consumer Goods Series.
For more detailed information or customized research requirements please contact:
Gaurav Kumar Gagan Uppal
l
Phone: +91 33 4064 6214 Phone: +91 22 4098 7530
E‐Mail: gaurav.kumar@netscribes.com E‐Mail: gagan.uppal@netscribes.com
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About Netscribes
Netscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
g g f g p y p p f
business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth
objectives.
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,
Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India
Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the
sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.
PAINT INDUSTRY IN INDIA 2011. PPT 8