The paint industry is raw material intensive, requiring around 300-400 raw materials. Raw materials account for 60% of sales on average for large companies and up to 70% for small companies. There are three main groups of raw materials: pigments like titanium dioxide and zinc oxide, solvents like mineral turpentine, and resins and additives.
The Indian paint market is valued at Rs 170 billion but per capita consumption is low at 0.5 kg annually compared to other countries. The market is fragmented with the unorganized sector accounting for 35% and around 2,000 small to medium manufacturers. The top organized players are Asian Paints, Kansai Nerolac, Berger Paints, and I