India’s paint industry is in the limelight, with robust demand and softening input costs ensuring high growth rates. However, increasing competitive intensity is expected to restrict margins and reduce the market share of established players in the long term, with multiple new players entering the paints business in recent months.
Lured by high growth rates of the sector, the paint industry has seen the entry of several new business conglomerates, such as Grasim Industries, Pidilite, Astral, and JSW Group, recently. The ~ ₹70,000 crore paint industry is slightly oligopolistic, with market share tilted towards a handful of companies.
As a reminder, the Indian paint industry is divided into two main segments: decorative paints and industrial paints. Decorative paints contribute about 70% of the market, while industrial paints represent the remaining 30%. The decorative paints segment is around 70% to 75% organized, with just five companies, namely Asian Paints, Berger Paints, Kansai Nerolac Paints, Akzo Nobel, and Indigo Paints, commanding a substantial market share of 90%. These five players have grown at a remarkable rate of around 15% in terms of revenue in the last five fiscal years. As per CareEdge Ratings, sales of the top five players are projected to increase by around 10% in the ongoing fiscal year.
THE SCOPE
This story is from the September, 2023 edition of Beyond Market.
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This story is from the September, 2023 edition of Beyond Market.
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