A PROFILE OF THE

INDIAN PAINT INDUSTRY

© INFORMATION RESEARCH LIMITED (IRL)

MARCH 2003
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 A Profile of the Indian Paint Industry

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 A Profile of the Indian Paint Industry

CONTENTS

1. INTRODUCTION............................................................................................................................................... 1
1.1 A PROFILE OF THE INDIAN PAINT INDUSTRY .................................................................................. 1
1.2 FORECASTS ............................................................................................................................................... 1
1.3 UNITS OF VOLUME AND VALUE.......................................................................................................... 1
1.4 METHODOLOGY....................................................................................................................................... 1
1.5 ROUNDING ................................................................................................................................................ 2
2. EXECUTIVE SUMMARY................................................................................................................................. 3
2.1 INDUSTRY STRUCTURE ......................................................................................................................... 3
2.2 DEMAND .................................................................................................................................................... 3
2.3 GROWTH SUMMARY AND FUTURE TRENDS .................................................................................... 6
3. BACKGROUND ................................................................................................................................................. 9
3.1 ECONOMIC DATA .................................................................................................................................... 9
3.2 DEMOGRAPHIC DATA .......................................................................................................................... 10
3.2.1 Geographical Distribution of Population .................................................................................................. 10
3.2.2 Age Distribution of Population .................................................................................................................. 10
3.3 CLIMATIC DATA .................................................................................................................................... 13
3.4 THE INDIAN CHEMICAL INDUSTRY.................................................................................................. 15
3.4.1 General Remarks........................................................................................................................................ 15
3.4.2 Raw Materials For the Indian Paint Industry ............................................................................................ 16
4. THE ORGANISED SECTOR OF INDIAN PAINT INDUSTRY................................................................. 23
4.1 INTRODUCTION...................................................................................................................................... 23
4.2 TOP-TIER COMPANIES IN THE ORGANISED SECTOR.................................................................... 24
4.2.1 Asian Paints ............................................................................................................................................... 24
4.2.2 Goodlass Nerolac Paints............................................................................................................................ 29
4.2.3 Berger Paints India .................................................................................................................................... 31
4.2.4 ICI India..................................................................................................................................................... 34
4.2.5 Jenson & Nicholson ................................................................................................................................... 35
4.2.6 Shalimar Paints.......................................................................................................................................... 35
4.2.7 Mergers and Acquisitions Activity ............................................................................................................. 37
4.3 ROLE OF MULTINATIONAL PAINT COMPANIES IN INDIA ........................................................... 38
4.3.1 Akzo Nobel ................................................................................................................................................. 38
4.3.2 BASF .......................................................................................................................................................... 38
4.3.3 DuPont ....................................................................................................................................................... 38
4.3.4 Technology Licences Summarised.............................................................................................................. 38
4.3.5 Regional Strengths Summarised................................................................................................................. 40
5. THE MEDIUM- AND SMALL-SCALE SECTOR OF THE INDIAN PAINT INDUSTRY ..................... 41
5.1 INTRODUCTION...................................................................................................................................... 41
5.2 SWOT ANALYSIS OF THE SMALL-SCALE SECTOR ........................................................................ 42
5.3 PROFILES OF MEDIUM AND SMALL SCALE PAINT PRODUCERS IN INDIA.............................. 44
5.3.1 Acro Paints................................................................................................................................................. 44
5.3.2 Addisons Paints and Chemicals/Amalgamations Group............................................................................ 45
5.3.3 Advance Paints........................................................................................................................................... 45
5.3.4 Agsar Paints............................................................................................................................................... 45
5.3.5 Anupam Paints and Coatings..................................................................................................................... 46
5.3.6 Arcoy Industries ......................................................................................................................................... 46
5.3.7 Balsons Paint Industries ............................................................................................................................ 46
5.3.8 Bombay Paints ........................................................................................................................................... 47
5.3.9 Chemisol Adhesives.................................................................................................................................... 48
5.3.10 Cico Group................................................................................................................................................. 49

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 A Profile of the Indian Paint Industry

5.3.11 Cipy Polyurethanes .................................................................................................................................... 49

5.3.12 Decocem Paints.......................................................................................................................................... 50
5.3.13 Duga Paints and Varnishes........................................................................................................................ 50
5.3.14 Gamma Coatings........................................................................................................................................ 50
5.3.15 Gardwel Industries..................................................................................................................................... 51
5.3.16 Glossy Paints.............................................................................................................................................. 51
5.3.17 Grand Polycoats ........................................................................................................................................ 51
5.3.18 Gunjan Paints ............................................................................................................................................ 52
5.3.19 Indolac Paints ............................................................................................................................................ 52
5.3.20 Kishore Polyurethanes ............................................................................................................................... 53
5.3.21 Kroslink Polymers...................................................................................................................................... 53
5.3.22 Kripton Powder Paints............................................................................................................................... 53
5.3.23 Maharani Paints ........................................................................................................................................ 54
5.3.24 Marpol........................................................................................................................................................ 54
5.3.25 M K Products ............................................................................................................................................. 55
5.3.26 MRF ........................................................................................................................................................... 55
5.3.27 Navair International................................................................................................................................... 55
5.3.28 Nitco Paints................................................................................................................................................ 56
5.3.29 Orbit Coatings............................................................................................................................................ 56
5.3.30 Pidilite Industries ....................................................................................................................................... 57
5.3.31 Rajdoot Paints............................................................................................................................................ 57
5.3.32 Sarika Paints .............................................................................................................................................. 57
5.3.33 Schenectady Beck India.............................................................................................................................. 58
5.3.34 Singhal Paints ............................................................................................................................................ 58
5.3.35 Snowcem India ........................................................................................................................................... 59
5.3.36 Star Paint and Oil Industries ..................................................................................................................... 61
5.3.37 Surfacoats................................................................................................................................................... 61
5.3.38 Titan Paints and Chemicals / Lakshmi Powder Coatings .......................................................................... 62
5.3.39 Varuna Paints ............................................................................................................................................ 62
5.3.40 Zigma Paints .............................................................................................................................................. 63
6. INDIAN PAINT PRODUCTION, TRADE AND CONSUMPTION............................................................ 65
6.1 PAINT PRODUCTION ............................................................................................................................. 65
6.2 PAINT TRADE: IMPORTS AND EXPORTS .......................................................................................... 65
6.2.1 Analysis of Trade Based on Indian Customs and Excise Statistics ............................................................ 65
6.2.2 A Second Approach: India’s Trade in Paints With EU Countries ............................................................. 76
6.2.3 Final Note on Indian Paint Trade Statistics............................................................................................... 79
6.3 CONSUMPTION....................................................................................................................................... 80
6.3.1 Derivation of Apparent Consumption ........................................................................................................ 80
6.3.2 Per Capita Consumption............................................................................................................................ 80
7. INDIAN PAINT MARKET DATA ................................................................................................................. 81
7.1 DECORATIVE COATINGS ..................................................................................................................... 82
7.1.1 The Changing Decorative Coatings Market .............................................................................................. 82
7.1.2 Overview of Product Types in the Decorative Sector................................................................................. 84
7.1.3 Paint Retailing: Colour Mixing, Colour Selection, Paint Retailing and Distribution ............................... 86
7.2 INDUSTRIAL SECTOR ........................................................................................................................... 90
7.2.1 Introductory Overview ............................................................................................................................... 90
7.2.2 Automotive OEM and OEM Coatings ........................................................................................................ 91
7.2.3 Automotive Refinish Market ....................................................................................................................... 92
7.2.4 Powder Coatings Market ........................................................................................................................... 93
7.2.5 High Performance Coatings Market .......................................................................................................... 96
7.2.6 Marine Coatings Market ............................................................................................................................ 97
8. END-USER INDUSTRIES............................................................................................................................... 99
8.1 INTRODUCTION...................................................................................................................................... 99
8.2 CONSTRUCTION AND INFRASTRUCTURE DEVELOPMENT....................................................... 103
8.3 AUTOMOTIVE SECTOR....................................................................................................................... 104
8.3.1 Brief Overview ......................................................................................................................................... 104
8.3.2 Two-Wheelers........................................................................................................................................... 107

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 A Profile of the Indian Paint Industry

8.3.3 Cars.......................................................................................................................................................... 110

8.3.4 Commercial Vehicles ............................................................................................................................... 113
8.3.5 Tractors.................................................................................................................................................... 114
8.4 CONSUMER DURABLES ..................................................................................................................... 115
8.4.1 Overview .................................................................................................................................................. 115
8.4.2 Televisions................................................................................................................................................ 116
8.4.3 Refrigerators ............................................................................................................................................ 117
8.4.4 Washing Machines ................................................................................................................................... 118
9. FORECAST..................................................................................................................................................... 121

10. CONCLUDING REMARKS.......................................................................................................................... 123

11. INDIAN PAINT ASSOCIATIONS AND OTHER SOURCES OF INFORMATION.............................. 125

11.1 INDIAN PAINT ASSOCIATION ........................................................................................................... 125
11.2 INDIAN SMALL SCALE PAINT ASSOCIATION (ISSPA)................................................................. 125
11.3 OTHER SOURCES OF INFORMATION............................................................................................... 126
12. DIRECTORY OF INDIAN IMPORTERS AND BUYERS OF RAW MATERIALS .............................. 129

13. DIRECTORY OF INDIAN PAINT COMPANIES...................................................................................... 137

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 A Profile of the Indian Paint Industry

TABLE OF TABLES
1. INTRODUCTION............................................................................................................................................... 1
1.1 A PROFILE OF THE INDIAN PAINT INDUSTRY .................................................................................. 1
1.2 FORECASTS ............................................................................................................................................... 1
1.3 UNITS OF VOLUME AND VALUE.......................................................................................................... 1
1.4 METHODOLOGY....................................................................................................................................... 1
1.5 ROUNDING ................................................................................................................................................ 2
2. EXECUTIVE SUMMARY................................................................................................................................. 3
2.1 INDUSTRY STRUCTURE ......................................................................................................................... 3
2.2 DEMAND .................................................................................................................................................... 3
Summary of Indian Paint Demand By Sectoral Volume and Volume Share, 2002-3 (Tonnes and %)...........................4
Summary of Indian Paint Demand By Sectoral Value and Value Share, 2002-3 (Rs Billion and %).............................5
The Total Indian Paint Market in 2002-3, by Company (Market Share %) ....................................................................6
2.3 GROWTH SUMMARY AND FUTURE TRENDS .................................................................................... 6
Growth Summary of the Indian Paint Market.................................................................................................................6
3. BACKGROUND ................................................................................................................................................. 9
3.1 ECONOMIC DATA .................................................................................................................................... 9
India’s Major Trading Partners in 2000..........................................................................................................................9
3.2 DEMOGRAPHIC DATA .......................................................................................................................... 10
Projected Age Distribution of the Indian Population (Millions) ...................................................................................10
Indian Population, Population Density and Growth in 2001.........................................................................................11
3.3 CLIMATIC DATA .................................................................................................................................... 13
Mean Climatic Conditions in Northern and Eastern Indian Regions ............................................................................14
Mean Climatic Conditions in Central and Southern India ............................................................................................14
3.4 THE INDIAN CHEMICAL INDUSTRY.................................................................................................. 15
Overview of the Indian Chemical Industry by Sector...................................................................................................15
Expenditure on Indian Paint Manufacture as % of Sales ..............................................................................................16
Capacity and Production of Chemicals During 1999-2000, 2000-1 and Expected Production During 2001-2
(Thousand Tonnes) .......................................................................................................................................................16
Major Phthalic Anhydride Producers in India (2001)...................................................................................................17
Vinyl Acetate Monomer Use in India (%) ....................................................................................................................18
Indian Custom Duties on Paint Raw Materials, 2000-2003 (%) ...................................................................................21
4. THE ORGANISED SECTOR OF INDIAN PAINT INDUSTRY................................................................. 23
4.1 INTRODUCTION...................................................................................................................................... 23
4.2 TOP-TIER COMPANIES IN THE ORGANISED SECTOR.................................................................... 24
The Ownership of Asian Paints (%) .............................................................................................................................25
Asian Paints’ Sales Breakdown by Product (%) ...........................................................................................................26
Asian Paints’ Growth Locations from the Berger International Ltd Acquisition..........................................................27
Asian Paints’ Raw Material Consumption (Year Ending March 2000) ........................................................................28
Asian Paints’ Production and Revenue Breakdown (Year Ending March 2000)..........................................................28
Goodlass Nerolac Paints’ Raw Material Consumption (Year Ending March 2000) .....................................................30
Goodlass Nerolac Paints’ Production and Revenue Breakdown (Year Ending March 2000).......................................31
Berger Paints India’s Raw Material Consumption (Year Ending March 2000)............................................................33
Berger Paints India’s Production and Revenue Breakdown (Year Ending March 2000)..............................................33
Acquisitions Surrounding the Indian Paint Industry, 1998 - 2002................................................................................37
4.3 ROLE OF MULTINATIONAL PAINT COMPANIES IN INDIA ........................................................... 38
Licensing and Cooperative Agreements in the Indian Paint Industry ...........................................................................39
Regional Strengths of Indian Paint Manufacturers Summarised ..................................................................................40
5. THE MEDIUM- AND SMALL-SCALE SECTOR OF THE INDIAN PAINT INDUSTRY ..................... 41
5.1 INTRODUCTION...................................................................................................................................... 41
5.2 SWOT ANALYSIS OF THE SMALL-SCALE SECTOR ........................................................................ 42
5.3 PROFILES OF MEDIUM AND SMALL SCALE PAINT PRODUCERS IN INDIA.............................. 44
Snowcem India’s Raw Material Consumption (Year Ending March 2000)..................................................................60
Snowcem India’s Paint Production and Revenue Breakdown (Year Ending March 2000) ..........................................60
6. INDIAN PAINT PRODUCTION, TRADE AND CONSUMPTION............................................................ 65

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 A Profile of the Indian Paint Industry

6.1 PAINT PRODUCTION ............................................................................................................................. 65

Indian Production of Paints, Enamels and Varnishes, 1996-2000 (Tonnes) .................................................................65
6.2 PAINT TRADE: IMPORTS AND EXPORTS .......................................................................................... 65
Leading Exporters of Solvent-based Paints to India, 2000-1 (%) .................................................................................66
Leading Exporters of Water-based Paints to India, 2000-1 (%) ...................................................................................66
Sources of All Indian Paint Imports, 2000-1 (%) .........................................................................................................67
Indian Solvent-based Paint Exports by Destination, 2000-1 (%)..................................................................................68
Indian Water-based Paint Exports by Destination, 2000-1 (%) ....................................................................................68
All Indian Paint Exports by Destination, 2000-1 (%) ...................................................................................................69
Indian Paint Imports, 1997/8 – 2000/1 (Tonnes) ..........................................................................................................70
Indian Paint Imports, 1997/8 – 2000/1 (Million Rupees) .............................................................................................71
Major Trading Partners for Indian Paint Imports in 2000-1 .........................................................................................72
Indian Paint Exports, 1997/8 – 2000/1 (Tonnes) ..........................................................................................................73
Indian Paint Exports in 1997/8 – 2000/1 (Million Rupees) ..........................................................................................74
Major Trading Partners for Indian Paint Exports in 2001.............................................................................................75
Indian Paint Imports from EU Countries, 1997 – 06/2002 (Tonnes) ............................................................................76
Indian Paint Imports from EU Countries, 1997 – 06/2002 (Thousand ECU) ...............................................................77
Indian Paint Exports to EU Countries, 1997 – 06/2002 (Tonnes).................................................................................78
Indian Paint Exports to EU Countries, 1997 – 06/2002 (Thousand ECU)....................................................................79
6.3 CONSUMPTION....................................................................................................................................... 80
Apparent Consumption of Paint in India , 1998 –2002 (Tonnes) .................................................................................80
Per Capita Paint Consumption in Selected Asian Countries (kg/head).........................................................................80
7. INDIAN PAINT MARKET DATA ................................................................................................................. 81
Summary of Indian Paint Demand By Sector Volume (%) ..........................................................................................81
7.1 DECORATIVE COATINGS ..................................................................................................................... 82
The Indian Decorative Coatings Market by Volume in 1998 (%) ................................................................................82
The Indian Decorative Coatings Market by Volume in 2001 (%) ...............................................................................82
The Indian Decorative Coatings Market in 2001 by Value (%)....................................................................................83
Market Shares in the Organised Decorative Paint Market, 2001 (%) ...........................................................................85
Market Shares in the Premium Emulsion Sector (2001-2)............................................................................................85
Summary of Tintometric System Availability For Top Paint Companies (2003).........................................................86
7.2 INDUSTRIAL SECTOR ........................................................................................................................... 90
The Indian Market for Industrial Coatings by Value (%) .............................................................................................91
Typical Prices of Industrial Coatings in India (Rs/litre) ...............................................................................................91
Market Shares of Companies in the Indian OEM Sector in 2002-3 (%).......................................................................92
Market Shares of Companies in the Indian Automotive Refinishing Sector in 2002-3 (%) .........................................93
Small-scale Indian Powder Coatings Manufacturers ....................................................................................................94
Indian Powder Coatings Market by Technology (2002-3)............................................................................................95
Market Share in the Indian Powder Coatings Market (2002-3) ....................................................................................96
Market Shares in the Indian Protective Coatings Market (2002-3)...............................................................................97
Organised and Small-Scale Sector Shares in the Indian Marine Coatings Market .......................................................97
8. END-USER INDUSTRIES............................................................................................................................... 99
8.1 INTRODUCTION...................................................................................................................................... 99
Production Growth in Selected Indian Industries (Year ending March 1999-2002, %)..............................................100
Sales Growth in Selected Indian Industries (Year ending March 1999-2002, %).......................................................101
Export Growth in Selected Indian Industries (Year ending March 1999-2002, %) ....................................................102
8.2 CONSTRUCTION AND INFRASTRUCTURE DEVELOPMENT....................................................... 103
8.3 AUTOMOTIVE SECTOR....................................................................................................................... 104
Vehicle Sales in India, 1993/4 and 1997-2000 (Units) ...............................................................................................104
Indian Vehicle Output, 1998-2002 (Thousand Units).................................................................................................105
Indian Automotive Manufacturers and their Manufacturing Locations ......................................................................106
The Indian Market for Two-Wheelers, 1998 – 2002 (% of Sales) .............................................................................107
Indian Production of Two-Wheelers, 1999 – 2002 (Millions) ...................................................................................107
The Indian Motorcycle Market, 2000-1 (%) ...............................................................................................................108
Market Shares in the Indian Scooter Market (First Half of 2000-1) ...........................................................................109
Leading Car Models and Manufacturers in India (2002) ............................................................................................110
Indian Production in the Transport Sector, 1997/8 – 1999/2000 (Thousand Units)....................................................110
Recent Sales Growth in the Indian Automotive Sector, 2001-2 .................................................................................111
Market Shares in the Indian Passenger Car Sector (First Half of 2000-1) ..................................................................112
Market Shares in the Indian Utility Vehicle Sector (First Half of 2000-1) .................................................................112
Market Shares in the Indian LCV Sector (First Half of 2000-1).................................................................................113
Market Shares in the Indian M & HCV Sector (First Half of 2000-1)........................................................................113
Market Shares of Indian Tractor Manufacturers (1999-2000) ....................................................................................114

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8.4 CONSUMER DURABLES ..................................................................................................................... 115

Leading Companies in the Indian Market for Black and White Televisions ..............................................................116
Leading Companies in the Indian Market for Colour Televisions ..............................................................................116
Indian Refrigerator Production, 1994 – 2001 (Million Units) ....................................................................................117
Market Shares in the Indian Refrigerator Sector.........................................................................................................118
Market Shares in the Indian Washing Machine Sector ...............................................................................................118
9. FORECAST..................................................................................................................................................... 121
Forecast Growth in the Indian Decorative Coatings Market, 2002/3 – 2007/8 (Tonnes and %).................................121
Forecast Growth in the Indian Industrial Coatings Market, 2002/3 – 2007/8 (Tonnes and %)...................................122
10. CONCLUDING REMARKS.......................................................................................................................... 123

11. INDIAN PAINT ASSOCIATIONS AND OTHER SOURCES OF INFORMATION.............................. 125

11.1 INDIAN PAINT ASSOCIATION ........................................................................................................... 125
11.2 INDIAN SMALL SCALE PAINT ASSOCIATION (ISSPA)................................................................. 125
11.3 OTHER SOURCES OF INFORMATION............................................................................................... 126
12. DIRECTORY OF INDIAN IMPORTERS AND BUYERS OF RAW MATERIALS .............................. 129

13. DIRECTORY OF INDIAN PAINT COMPANIES...................................................................................... 137