SAMPLE SECTION FROM THE REPORT

Industry Trends
Growing Industrial Base Propelling the Growth of Industrial Paint

The demand for industrial paint is going to be driven by the pick-up in the automobile industry, durable goods,
and growth in Industrial sector in India. However, Automobile segment generates more than two-third of the
demand for the industrial paint. Industrial Paints cater the automobile segment by providing protection against
corrosion and rust on steel structures of vehicles. Apart from it, the infrastructure segment creates direct as well
as indirect demand for paint.

In automobile sector, foreign automobile company’s shows interest in opening the manufacturing houses in
India. Japanese crane manufacturer, Kobleco, has already set up a facility in Sri City, while another Japanese auto
coil spring maker, NHK Springs, is investing INR XX Billion to build its plant on XX acres in Sri City, Chennai. All these
decision lead to generate the high demand of paint in India. Moreover, automobile (passenger and commercial)
sales will boost, counting on government employees when the benefit of “Seventh Pay Commission” and “One
Rank One Pension” start trickling in.

Consumer durable companies are stepping up investments in production and distribution to grab the demand
of the industry goods, which simultaneously impact the demand of the paint industry. Consumer durables
market is rising due to increasing disposable income, easy finances and growing popularity of e-commerce
platforms.

Almost all leading appliance makers, including Panasonic, Sony, LG, Samsung, Videocon, and Haier, have ramped
up production capacity in India. Further, Foxconn the world’s largest contract manufacturer of smartphones
made a low-key entry into India to make handsets for furnish handset durable market. Apart from it, Samsung
Electronics is considering setting up its third manufacturing plant in India to make electronic goods, including
smartphones. The paint is one of the prominent materials for durable goods. With rising durable market, paint
industry in India is also rising.

India Paint Industry Outlook 2022

Decorative Paints Market Outlook 2022
By Application

Residential

India is on the brink of an urban revolution, with its population in towns and cities expected to reach XX Million
by 2031. So with the growing population, there will be increasing need for houses, which will led to development
of new houses in urban sector. As a result, increasing usage of paint in residential buildings will drive the overall
Indian paint market to a great extent.

As far as the Indian market is concerned, the frequency of repainting walls is around XX years. Even, Indian
middle class citizen used to paint their homes in case of major damage, or during any festive occasion or
marriage ceremonies only. But now-a-days the trend is changing with rising level of disposable income and an
upliftment in the standard of living, which made people more conscious about the good looks of their interior
walls, exterior walls, rooftops, etc. and thus led to reducing the average time taken for repainting.

Now large customer base, as far as decorative paints sector is concerned, want to visualize and plan their wall
shades before purchase. To tap the growing demand of decorative paints in mass consumer, companies are
taking various innovative steps, like providing the online platform to the consumer to select right colors for their
house. The consumers only need to upload the photos of the house in the prescribed platform. Then consumer
can try variety of colors and shades on uploaded photo. Moreover, company like Asian Paints has introduced
regular and express painting services for home painting, in which experts suggest the suitable colors for the
home.

In 2017-18, the paint market for residential buildings was estimated to be around INR XX Billion, which is
expected to grow with a CAGR of around XX% during 2018-19 to 2021-22, to reach INR XX Billion by 2021-22.

India Paint Industry Outlook 2022

 Decorative Paint Market in Residential Sector (Billion INR),
Figure 5‑3
2015-16 to 2021-22
430
380
343
303
263
234
205

2015-16e 2016-17e 2017-18e 2018-19f 2019-20f 2020-21f 2021-22f

Source:  RNCOS

By Product Class

Premium Paint

Premium paints consist of high-quality emulsions and premium enamels. They dry faster than economy or mid-
tier paints, and do not produce strong odor when wet. Further, stains on a premium painted surface can be
removed with water, and it is less affected by weather changes.

Presently, the growth of the Indian premium paint industry is being witnessed from new demand, especially
in Tier-II and Tier-III cities, thus signaling the growing acceptance of quality products among the masses. The
growing popularity of quality paints and increasing income levels of people residing in Tier-II and Tier-III cities
have pushed the growth in premium paint market of Indian decorative paint industry.

That’s why the premium paints have been expanding at a considerable rate over the past few years. Demand for
premium paints has been increasing as the buyers are becoming more aesthetically aware, and are realizing that
paint is a vital feature of their homes. Due to these factors, the decorative premium class paints are growing faster
than the paints in any other product class. However, in order to push the sales of premium products, companies

India Paint Industry Outlook 2022

 Decorative Premium Paint Market (Billion INR), 2015-16 to
Figure 5‑9
2021-22

2015-16e 2016-17e 2017-18e 2018-19f 2019-20f 2020-21f 2021-22f

Source:  RNCOS

are increasingly setting up exclusive outlets, like Asian Paints’ signature stores or Kansai’s ‘Nerolac Impression
Style Zone’ outlets, across the country. Thus, it is forecasted that the decorative premium paint market will grow
at a CAGR of around XX% during 2018-19 to 2021-22, to reach around INR XX Billion by 2021-22.

By Technology

Water Based

Introduction of water-based paint is a huge success in Indian decorative paint market. The majority of wall
paint sold today is water-based. The reason for the popularity of water-based paint is its higher performance
and quality as compared with the oil-based ones. The water-based paints are also gaining popularity due to
the advantages like low level of toxic emissions, easy cleanup with water, and quick drying. Apart from it, water
based paint enables flexible finish resistant to cracking, stable color over time without yellowing and grip well
to almost any surface.

India Paint Industry Outlook 2022

 Water-based Decorative Paint Market (Billion INR), 2015-16 to
Figure 5‑13
2021-22

2015-16e 2016-17e 2017-18e 2018-19f 2019-20f 2020-21f 2021-22f

Source:  RNCOS

The potent health effects of oil-based paints have made paint companies reconsider the composition of their
products. This has led to the development of a new range of eco-friendly non-toxic paints. These paints have
a less potent odor, and take less time to dry. Water-based paints are also known to have more elasticity than
oil-based paints. It can be used on almost all types of surfaces without any pre-treatment. Thus, all the major
companies are focusing on water-based paints in their product portfolio.

In 2017-18, the water-based paint market was estimated to be around INR XX Billion, which is expected to grow
with a CAGR of XX% during 2018-19 to 2021-22, to reach around INR XX Billion by 2021-22.

India Paint Industry Outlook 2022

Industrial Paints Market Outlook 2022
By Segment

Automotive Coating

Automotive Coating is widely used in the automobile industry. In automotive coating, the paint does not acquire
its properties until various coats are applied one after the other under precisely defined conditions. A traditional
automotive paint process begins with the application of pretreatment and electrocoat, followed by a primer
layer. After the primer layer is applied, a topcoat layer of basecoat and clearcoat is applied and left to dry. This
results in a five-layer lustrous and durable paint finish.

Nippon Paint constantly sets new industry standards in coating the finest cars. The company’s extensive range
of automotive products includes surface treatment chemicals, protective base-coats, intermediate coats and
sparkling top-coats. Berger has also strong presence in automotive segments. The main customers of Berger
are Tata Motors, Force Motors, Mahindra and Mahindra, Ashok Leyland, Piaggio India, Atul Auto, Hero Motocorp,
TVS Motors, Yamaha Motors, Royal Enfield, etc.

Kansai Nerolac Paints Ltd (KNP) has an extensive range of auto refinishing brands, such as Retan PG ECO Hybrid,
Acric EZ, PU Perfect Match, Nerolac Auto Paint & NovXX. The range caters to all auto segments, such as Cars,
Two wheelers, Commercial Vehicles & Buses, etc. The key customers of Kansai Nerolac are Maruti Suzuki, Toyota
Motors, Honda, General Motors, Renault, Fiat, Hindustan Motors, etc.

The automotive coating paint is resistant to high stresses, like rain and UV radiation, heat and cold, gravel from
the road, and the brush strokes at the car wash. In 2017-18, the automotive coating market was estimated
around INR XX Billion. In future, the automotive coating market is forecasted to reach around INR XX Billion by
2021-22, growing at a CAGR of around XX% during 2018-19 to 2021-2022.

India Paint Industry Outlook 2022

Figure 6‑3 Automotive Coating Market (Billion INR), 2015-16 to 2021-22

2015-16e 2016-17e 2017-18e 2018-19f 2019-20f 2020-21f 2021-22f

Source:  RNCOS

India Paint Industry Outlook 2022