1. Indian Decorative Paint Industry

2. Introduction
 The Indian Paint Industry has been growing at a rate of near
about 15% for the past few years.
 The industry is estimated at around Rs. 21000 Cr.
 The per capita consumption in India is 1.5kgs p.a., as compared
to the global average of 15kgs p.a.

3. History of Paints
 The Indian Paint Industry was initiated in 1902, when
Shalimar Paints set-up its first factory in Kolkata.
 After liberalization, as the excise duties got drastically reduced
(from 40% to 16%), the industry recorded a healthy growth of
12-13% annually.

4. Segmentation of Paint Industry
Indian Paint
Industry
Decorative Industrial
Emulsions Distemper Automobiles Marine
Paints
& others
Generally Mainly
in Cities Villages

5. Market Segmentation
Decorative: Major segments in decorative include exterior wall
paints, interior wall paints, wood finishes and enamel and
ancillary products such as primers, putties etc.
 Decorative paints account for over 70% of the overall paint
market in India.
 Demand for decorative paints arises from household painting,
architectural and other display purposes.
 Demand in the festive season (September-December) is
significant, as compared to other periods.
Contd.

6. Market Segmentation
Industrial: Three main segments of the industrial sector include
automotive coatings, powder coatings and protective coatings.
 User industries for industrial paints include automobiles
engineering and consumer durables.
 The industrial paints segment is far more technology intensive
than the decorative segment.

7. Major Players in Indian Paint Industry

8. Types of Decorative Paints
Decorative Paints
Interior Paints Exterior Paints
Emulsion
Wall
-Emulsion Textured
-Distemper
Cement
Metal
-Enamel
Wood

9. Interior Paints (Emulsion)
Dulax Velvet Touch
Asian Paints Royale
luxury Emulsion Silk

10. Interior Paints (Distemper)
Tractor Distemper Beauty Distemper Bison Distemper

11. Interior Paints Metal & Wood (Enamel)
Synthetic Enamel Gloss Premium Enamel
Apcolite Premium Gloss
Enamel Luxol

12. Exterior Paints
Apex Ultima Weather Shield MAX
Tartaruga (Textured) Snowcem Plus (Cement)

13. Price of Products (Interior)
Segment Product Price (per lt.) Company
Walls (Emulsion) Royal Rs. 360-450 Asian Paints
Walls (Emulsion) Velvet Touch Rs. 360-450 ICI Dulax
Walls (Emulsion) Impression Rs. 360-450 Nerolac Paints
Walls (Emulsion) Silk Rs. 360-450 Berger Paints
Walls (Emulsion) Premium Rs. 250-280 Asian Paints
Walls (Emulsion) Super Smooth Rs. 250-280 ICI Dulax
Walls (Distemper) Tractor Rs. 60-80 (per Asian Paints
lt.)
Walls (Distemper) Bison Rs. 65-80(per Berger Paints
lt.)
Metal & Woods Dulax Gloss Rs. 200-230 ICI Dulax
Premium Enamel
Metal & Woods Synthetic Enamel Rs. 200-270 Nerolac Paints
Metal & Woods Luxol Rs. 200-270 Berger Paints
Metal & Woods Apcolite Premium Rs. 200-270 Asian Paints
Gloss Enamel

14. Price of Products (Exterior)
Segment Product Price (per lt.) Company
Walls (Emulsion) Apex Ultima Rs. 350-400 Asian Paints
Walls (Emulsion) Dulax weather Rs. 350-400 ICI Dulax
Shield Max
Walls (Emulsion) Apex Rs. 250-300 Asian Paints
Walls (Emulsion) Dulax weather Rs. 250-300 ICI Dulax
Shield
Walls (Emulsion) Weather coat All Rs. 250-300 Berger Paints
Guard

15. Mechanism of Paints
Major
Major Inputs End User
Products
Decorative
Raw Materials Products: Paint Households,
(56%) Emulsions, Enamels, Construction
Distempers, Wood
Finishes, Metal
firms (70%)
Finishes etc.
Selling &
Administration
expenses Automobiles
(23%) Industrial Products: Consumer Goods
Powder Coating,
Floor Coating,
Marine Industry
Employee Cost Surface Coating etc. (30%)
(12%)

16. Components of Paints
Raw Materials: On an average, raw materials constitute 56% of
the total expenditure in paint companies.
• Titanium dioxide is one of the major raw materials and price
fluctuations in its cost have direct and substantial impact on
the cost of production.
• Crude oil derivatives are the other major raw materials and
have similar impact.
• Apart from these a large number of other raw materials are
used for adding/giving specific properties to the wide product
range offered by the industry.
Contd.

17. Components of Paints
• End-User: The decorative paints segment products find
use in households and construction whereas the industrial
segment products find use in automotive industry,
consumer durables industry.

18. Sales of Companies
Net Sales(FY2011) in Cr.
7000
6000
5000
Quantity
4000
3000
2000
1000
0
Asian Kansai Berger Shalimar
ICI Paints
Paints Nerolac Paints Paints
Net Sales(FY2011) in Cr. 6607.2 2266.2 2096.2 1087.6 404.4

19. Market Shares of Companies (Contd.)
35% 32%
Asian Paints
Kansai Nerolac
Berger Paints
5% 11% ICI Paints
6% Others
11%
Unorganised

20. Distribution Process of Paints
Paint Manufactures
Regional Warehouses
Company Dealer
Customers

21. Factors affecting Paint Industry
• Increasing level of income & education
• Increasing urbanisation
• Increasing share of organised sector
• Development of the Realty, Automobile and Infrastructure
sector
• Availability of financing options
• Increasing Penetration in the Rural Markets

22. New concepts of Paints
• Multi coloured room concept.
• Lead free colour.

24. Conclusions
• Over the next few years, the ratio of industrial paints to
decorative paints is expected to be 50:50, more in line with the
global trend. Currently it is 30:70.
• Decorative paints segment is expected to witness higher
growth going forward. The incentives given by the
government to the housing sector have benefited the housing
sector immensely. This will benefit key players in the long
term.
• Within the decorative coatings segment, considerable growth
is being observed in the exterior coatings segment. Paint
manufacturers have launched premium products in this
category, which are doing well due to superior quality and
durability.

26. References:
• www.indianmirror.com
• www.bergerpaints.com
• www.asianpaints.com
• www.nerolac.com
• www.competitiveness.in
• www.stockshastra.moneyworks4me.com
• www.equitymaster.com
• Phulwari Paints, Bapuji Nagar, Bhubaneswar
• Kunthia Brothers, Ravi Talkies, Bhubaneswar