Paint Industry In India (2012-15)
Executive summary
India’s strong economic growth has propelled the paint industry to double-digit growth over the past few years and has made it Asia Pacific’s fastest growing paint market. Despite fast growth, India’s per capita paint consumption is still abysmally low at ~2kg/year. 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.
Nearly ~65% of the paint market is organized. The organized market is highly concentrated and a classic example of an oligopoly, where entry barriers are high and the ‘top-5’ players capture most of the market, while the unorganized market is highly fragmented with over 2,000 players.
Trends in the Industry
Scope of the report
India’s strong economic growth has propelled the paint industry to double-digit growth over the past few years and has made it Asia Pacific’s fastest growing paint market. Despite fast growth, India’s per capita paint consumption is still abysmally low at ~2kg/year. 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.
Nearly ~65% of the paint market is organized. The organized market is highly concentrated and a classic example of an oligopoly, where entry barriers are high and the ‘top-5’ players capture most of the market, while the unorganized market is highly fragmented with over 2,000 players.
Trends in the Industry
- Perception Change from Aesthetic to Protective Coating
- Focus on Research and Development
- Launch of Various Innovative Product Offerings
- Increased Thrust on Brand Creation and Distribution
- Water Based Paints Substituting Lower End Paints
- Tinting Systems a Trend Now
Scope of the report
- Indian Paint Industry at a glance
- Emerging trends in the industry
- Demand Supply scenario encompassing domestic production and import numbers and projections
- Factors driving growth, Issues & Challenges
- Government Regulations & Initiatives in Indian market
- Major players , Financials and their SWOT Analysis
- Forecasts
- To understand the various factors which are fuelling the growth and those which are/will be critical for the industry performance in the near term
- Comprehensive report covering all the aspects required to understand the industry performance and future prospects.
- The report elucidates the current market scenario of the industry and forecasts key parameters which helps to anticipate the industry performance
1. OVERVIEW
1.1 STRUCTURE OF THE INDUSTRY
1.1.1 Decorative Segment
1.1.2 Industrial Segment
2. DEMAND-SUPPLY SCENARIO
3. INDUSTRY GROWTH DRIVERS
3.1 Low Per Capita Consumption of Paints in India -Room for Growth
3.2 Need for Prevention of Corrosion
3.3 Increasing Level of Income and Education
3.4 Increasing Urbanization
3.5 Boom in Indian Real Estate/Housing
3.6 Burgeoning Demand from Automobile and Infrastructure Sector
3.7 Less Seasonality
3.8 Faster Growth in Rural Markets
4. EMERGING TRENDS IN THE INDUSTRY
4.1 Perception Change from Aesthetic to Protective Coating
4.2 Focus on Research and Development
4.3 Launch of Various Innovative Product Offerings
4.4 Increased Thrust on Brand Creation and Distribution
4.5 Water Based Paints Substituting Lower End Paints
4.6 Tinting Systems a Trend Now
5. GOVERNMENT REGULATIONS & INITIATIVES
6. SWOT ANALYSIS
6.1 STRENGTHS
6.1.1 Indian Paint Industry in Sweet Spot
6.1.2 Oligopolistic Nature of the Industry
6.1.3 India- A Manufacturing Hub
6.1.4 High Pricing Power
6.2 WEAKNESS
6.2.1 Constant Up Gradation of Technology Required
6.2.2 Less Export Opportunities
6.2.3 Industrial Paints Industry- Low Margin Business
6.2.4 Scarcity of Raw Materials
6.3 OPPORTUNITIES
6.3.1 Low Per Capita Consumption
6.3.2 Favorable Demographics
6.3.3 Increase in Discretionary Spending
6.4 THREATS
6.4.1 Increasing Competition
6.4.2 Increasing Raw Material Costs
6.4.3 Rupee Volatility
6.4.4 Changing Government Rules and Regulations
6.4.5 Slowdown in Economy
7. PORTERS 5 FORCES
7.1 Bargaining power of buyers
7.2 Bargaining power of suppliers
7.3 Threat of substitutes
7.4 Rivalry among existing players
7.5 Threat of new entrants
8. KEY PLAYERS
8.1 ASIAN PAINTS LTD.
8.1.1 SWOT ANALYSIS
8.1.2 FINANCIAL HIGHLIGHTS
8.2 KANSAI NEROLAC PAINTS LTD.
8.2.1 SWOT ANALYSIS
8.2.2 FINANCIAL HIGHLIGHTS
8.3 BERGER PAINTS INDIA LTD.
8.3.1 SWOT ANALYSIS
8.3.2 FINANCIAL HIGHLIGHTS
9. THE HERFINDAHL-HIRSCHMAN INDEX
10. INDUSTRY PERFORMANCE
11. FORECASTS & OUTLOOK
12. ANNEXURE
1.1 STRUCTURE OF THE INDUSTRY
1.1.1 Decorative Segment
1.1.2 Industrial Segment
2. DEMAND-SUPPLY SCENARIO
3. INDUSTRY GROWTH DRIVERS
3.1 Low Per Capita Consumption of Paints in India -Room for Growth
3.2 Need for Prevention of Corrosion
3.3 Increasing Level of Income and Education
3.4 Increasing Urbanization
3.5 Boom in Indian Real Estate/Housing
3.6 Burgeoning Demand from Automobile and Infrastructure Sector
3.7 Less Seasonality
3.8 Faster Growth in Rural Markets
4. EMERGING TRENDS IN THE INDUSTRY
4.1 Perception Change from Aesthetic to Protective Coating
4.2 Focus on Research and Development
4.3 Launch of Various Innovative Product Offerings
4.4 Increased Thrust on Brand Creation and Distribution
4.5 Water Based Paints Substituting Lower End Paints
4.6 Tinting Systems a Trend Now
5. GOVERNMENT REGULATIONS & INITIATIVES
6. SWOT ANALYSIS
6.1 STRENGTHS
6.1.1 Indian Paint Industry in Sweet Spot
6.1.2 Oligopolistic Nature of the Industry
6.1.3 India- A Manufacturing Hub
6.1.4 High Pricing Power
6.2 WEAKNESS
6.2.1 Constant Up Gradation of Technology Required
6.2.2 Less Export Opportunities
6.2.3 Industrial Paints Industry- Low Margin Business
6.2.4 Scarcity of Raw Materials
6.3 OPPORTUNITIES
6.3.1 Low Per Capita Consumption
6.3.2 Favorable Demographics
6.3.3 Increase in Discretionary Spending
6.4 THREATS
6.4.1 Increasing Competition
6.4.2 Increasing Raw Material Costs
6.4.3 Rupee Volatility
6.4.4 Changing Government Rules and Regulations
6.4.5 Slowdown in Economy
7. PORTERS 5 FORCES
7.1 Bargaining power of buyers
7.2 Bargaining power of suppliers
7.3 Threat of substitutes
7.4 Rivalry among existing players
7.5 Threat of new entrants
8. KEY PLAYERS
8.1 ASIAN PAINTS LTD.
8.1.1 SWOT ANALYSIS
8.1.2 FINANCIAL HIGHLIGHTS
8.2 KANSAI NEROLAC PAINTS LTD.
8.2.1 SWOT ANALYSIS
8.2.2 FINANCIAL HIGHLIGHTS
8.3 BERGER PAINTS INDIA LTD.
8.3.1 SWOT ANALYSIS
8.3.2 FINANCIAL HIGHLIGHTS
9. THE HERFINDAHL-HIRSCHMAN INDEX
10. INDUSTRY PERFORMANCE
11. FORECASTS & OUTLOOK
12. ANNEXURE
LIST OF FIGURES & TABLES
Figure 1 Indian Paint Industry- Market Size (US$ Bn)
Figure 2 Per Capita Consumption of Paints
Figure 3 GDP Growth v/s Paints Industry Growth
Figure 4 Indian Paint Industry - Structure
Figure 5 Indian Paint Industry- Segments
Figure 6 Decorative Sector Composition
Figure 7 Industrial Sector Composition
Figure 8 Housing Stock in India (Million Units)
Figure 9 Automobile Volumes (FY08-FY14E)
Figure 10 Infrastructure Investments (INR Bn, FY12-FY17E)
Figure 11 Growth in Consumer Durables Production Index
Figure 12 Capacity of Top Four Domestic Companies (KLs/annum)
Figure 13 Capacity Addition (Tonnes)
Figure 15 Indian Population Structure (In Bn, 2001-11)
Figure 14 Per Capita Income India (In INR, 2006-15E)
Figure 16 Number of Households (In Bn, 1991-2011)
Figure 17 Raw Material Cost Break Up
Figure 18 Growing Discretionary Spend (2000-20)
Figure 19 Market Share of Paints Industry (Organized Market)
Figure 20 Brent Crude Prices (USD/Barrel)
Figure 21 TiO2 Price on Uptrend (INR/Kg)
Figure 22 Depreciating Rupee
Figure 23 Decorative Paints Market- Market Share
Figure 24 Operating Margins of Top Four Players
Figure 25 Asian Paints-Colour World Stores with Tinting Machines
Figure 26 Industrial Paints Market Share
Figure 27 Berger Paints- Segment Contribution
Figure 28 Berger Paints- Capacity Expansion
Figure 29 Market Concentration
Figure 30 Price Hikes in the Industry
Figure 31 Quarterly Average USD/INR
Figure 32 Titanium Dioxide Imports (MT)
Figure 33 Rising Income Level
Figure 34 Number of Pakka Households- Urban (Mn)
Table 1 Estimated Houses Coming for Repainting
Table 2 Negotiating leverage of buyers
Table 3 Negotiating leverage of suppliers
Table 4 Threat of substitutes
Table 5 Degree of rivalry
Table 6 Entry Barriers
Table 7 Peer Group Comparison
Table 8 Dealership Position of Players
Figure 1 Indian Paint Industry- Market Size (US$ Bn)
Figure 2 Per Capita Consumption of Paints
Figure 3 GDP Growth v/s Paints Industry Growth
Figure 4 Indian Paint Industry - Structure
Figure 5 Indian Paint Industry- Segments
Figure 6 Decorative Sector Composition
Figure 7 Industrial Sector Composition
Figure 8 Housing Stock in India (Million Units)
Figure 9 Automobile Volumes (FY08-FY14E)
Figure 10 Infrastructure Investments (INR Bn, FY12-FY17E)
Figure 11 Growth in Consumer Durables Production Index
Figure 12 Capacity of Top Four Domestic Companies (KLs/annum)
Figure 13 Capacity Addition (Tonnes)
Figure 15 Indian Population Structure (In Bn, 2001-11)
Figure 14 Per Capita Income India (In INR, 2006-15E)
Figure 16 Number of Households (In Bn, 1991-2011)
Figure 17 Raw Material Cost Break Up
Figure 18 Growing Discretionary Spend (2000-20)
Figure 19 Market Share of Paints Industry (Organized Market)
Figure 20 Brent Crude Prices (USD/Barrel)
Figure 21 TiO2 Price on Uptrend (INR/Kg)
Figure 22 Depreciating Rupee
Figure 23 Decorative Paints Market- Market Share
Figure 24 Operating Margins of Top Four Players
Figure 25 Asian Paints-Colour World Stores with Tinting Machines
Figure 26 Industrial Paints Market Share
Figure 27 Berger Paints- Segment Contribution
Figure 28 Berger Paints- Capacity Expansion
Figure 29 Market Concentration
Figure 30 Price Hikes in the Industry
Figure 31 Quarterly Average USD/INR
Figure 32 Titanium Dioxide Imports (MT)
Figure 33 Rising Income Level
Figure 34 Number of Pakka Households- Urban (Mn)
Table 1 Estimated Houses Coming for Repainting
Table 2 Negotiating leverage of buyers
Table 3 Negotiating leverage of suppliers
Table 4 Threat of substitutes
Table 5 Degree of rivalry
Table 6 Entry Barriers
Table 7 Peer Group Comparison
Table 8 Dealership Position of Players
