MINI PROJECT -2 REPORT

Submitted in partial fulfilment of Master of Business Administration

Session- 2021-2022

“A Role of OEM Technology in Automotive Paint Industry”

   Internal Guide Submitted By

Prof. Priyanka Singh Akarshit Gupta

[Assistant Professor] Roll No- 2101640700016

                                                                 

PSIT COLLEGE OF ENGINEERING

Affiliated to Dr. APJAKTU

                                         

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 DECLARATION 

I hereby declare that this submission is my own work. It contains no material previously

published or written by another person, nor has this material to a substantial extent been

accepted for the award of any other degree or diploma of the university or other institute of

higher learning. 

Akarshit Gupta
Roll No. - 2101640700016

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 ACKNOWLEDGMENT 

Mini Project Report is the one of the important part of MBA program, which has helped

me to gain a lot of experience, which will be beneficial in my succeeding career. For this

with an ineffable sense of gratitude I take this opportunity to express my deep sense of

indebtedness and gratitude to Dr. S. K. Bhalla, Director - Pranveer Singh Institute of

Technology and Dr. Harit Kumar, Head of Business Administration Department, for their

encouragement, support and guidance in carrying out the project.

I am very much thankful to, my Project Guide [Ms. Priyanka Singh], MBA Department

for his/her interest, constructive criticism, persistent encouragement and untiring guidance

throughout the development of the project. It has been my great privilege to work under his

inspiring guidance.

I am also thankful to my parents and my friends for their indelible co-operation for

achieving the goals of this study.

Pranveer Singh Institute of Technology Mini Project -2

 EXECUTIVE SUMMARY

Automotive Paint Additives Market size is forecast to reach $5.1 billion by 2025,
after growing at a CAGR of 6.8% during 2020-2025. The growth of the market for
automotive paint additives is driven by an increase in vehicle manufacturing and a rise in
demand for innovative and environmentally friendly automotive paints. This has prompted
players to develop products that are better and more effective, contributing to demand
growth. Numerous paint additives have been introduced due to the increased automobile
production and rise in demand for long-lasting paints for vehicles. The demand has
complemented the growth of the market for automotive paint additives. Furthermore, the
implementation of strict government regulations to opt for eco-friendly paints to reduce the
adverse environmental impact is driving global market growth.

This growth can be attributed mainly due to the extensive utilization of aerosol paints in the
construction industry. Aerosol paint is paint that comes in a sealed, pressurized container and
is released in as an aerosol spray. The paint is dispersed by depressing a nozzle on the top of
the can, connected to a valve inside the can. Automotive paint leaves a smooth, evenly coated
surface, unlike standard, rolled or brushed paint finishes. It is applied on surfaces for both,
aesthetics and protection. The most important resins used in automotive paints
are pigments, epoxy polymers and alkyd polymers. Automotive painting is one of the most
preferred ways of applying paint. As compared to conventional paints, automotive paints
have unique atomization, storage and application methods. Automotive paints are designed to
be used on a wide range of surfaces like metals, plastic, wood, glass, and masonry. Primarily
due to their high quality and quick-drying automotive paints can be used on both new and
existing structures, such as monuments, private offices, factories, residential spaces, and
public buildings, which is increasing their demand. For automotive DIY, acrylic
enamel spray paints are used because they last a lot longer, as they form a hard shell when
dry. Unlike most other industry, the paint industry was relatively free of regulations.
However it was perceived to be the luxury item and was a subject to high level of sales and
the excise taxes. The high excise duty regime coupled with relatively low costs of investment
in setting-up paint unit, made local manufacture and distribution may quite attractive. This
lead to the emergence of very large number of small manufactures competing mainly in lower
segment of the paint market. Boom in Indian Housing Sector: Increasing Urbanization,
cheaping housing loans and a shift from semi-permanent to permanent housing structures
have been driving growth in automotive and decorative segments. And an average growth of
about 10% in the industrial paint.

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 DESCRIPTION OF AN INDUSTRY

The global automotive paint market size is projected to witness an above-average growth

over the next couple of years. Demand for automotive paints is growing due to constant
improvements in their properties and functionalities. Today, automotive paints are not only
used for the beautification of the vehicles but also to enhance surface durability.
Automotive paints increase the endurance of metal and aluminium parts of a vehicle,
enabling them to withstand extreme environmental conditions such as heat, acid, UV
radiation, and dust particles. Moreover, automakers are channelizing efforts to improve
overall car coat and painting techniques.
Several layers of paint and coating are applied on modern vehicles, which can reach thickness
of nearly 100 µm (0.1mm). In order to ensure proper application of automotive paint, most
manufacturers follow a highly systematic and precautious preparation procedure. Automotive
paints usually comprise a combination of coating layers, which include primer paint,
basecoat, and clearcoat.

Automotive Paint Market Trends

Surging Automotive Sector:

Global sales of automotive paint are increasing owing to rising production of vehicles,
coupled with robust growth of the automotive sector in countries such as Brazil, China,
Mexico, India, and South Korea.
In addition, growing trends of automotive restorations and refurbishing are likely to reflect
favorably on the sales prospects of automotive paints in the aftermarket vertical. At the same
time, rapid adoption of advanced powder coating and thermal spray technologies is likely to
boost the growth of the global automotive paint market.
Reduction of Emission-producing Products:
Companies that manufacture automotive paints are focusing on the development of products
that are eco-friendly. This is primarily due to increasing concerns over emission of toxic
gasses in the environment. The automotive sector is under pressure to reduce the effects of
their products that contribute to environmental degradation.
Moreover, government organisations and environmental bodies are encouraging the
utilization of technologies that help in lowering emission levels. Hence, companies are
shifting towards painting and coating products that are non-toxic.

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Regional Outlook of Automotive Paint Market

In terms of revenue, North America is expected to hold the top spot as far as global
automotive paint market share is concerned. Existence of a massive automotive sector is
substantiating the growth of the automotive paint market in North America. During the
forecast period of 2020 to 2030, the region’s market is projected to exhibit an impressive
growth as compared to other regions.

COVID-19 Impact on Automotive Paint Market

The COVID-19 pandemic has led to almost all countries, economies, and industries going
into declining growth. Lockdowns, travel and trade restrictions and regulations, suspension of
manufacturing activities due to labor shortage, and reduced demand across sectors are being
witnessed throughout the world.
With the COVID-19 crisis putting the brakes on regular economic activities, sales of new
vehicles have plunged across the globe, thereby badly impacting the automotive paint market
too. As lockdowns and restrictions ease with the containment of the virus and manufacturing
picks pace, the automotive paint market will go back to its original growth trajectory.

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Key Segments of Automotive Paint Market

PMR’s study on the automotive paint market is divided into five significant segments –
coating, finish, vehicle, paint base, and region. This report offers comprehensive data and
information about the important market dynamics and growth parameters related to these
categories:-

Coating  Electrocoat
 Primer
 Basecoat
 Clearcoat
Finish  Metallic
 Solid
 Pearlescent
Vehicle  Compact Passengers Cars
 Mid-Sized Passenger Cars
 Premium Passengers Cars
 Luxury Passenger Cars
 Light Commercial Vehicles
 Heavy Commercial Vehicles
Paint-Base  Solvent-borne
 Water-borne
Region  North America
 Latin America
 Europe
 East Asia
 South Asia & Pacific
 Middle East & Africa

Product Range of the Paint Industry:-

1. Automotive Paints
2. Decorative Paints
3. Industrial Paints
4. Ancillaries- like primers, fillers stainers etc.

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How is automotive paint made?
The automotive paint is made up of three main components:

1. Pigment: Gives colour to the paint.

2. Thinner: Levels out the consistency of paint
3. Binder: Binds the pigment and thinner

Further, you will see terms like water-borne paint or solvent paint which could possibly
confuse you while selecting the perfect automotive paint for your car. We will see all aspects
of how automotive paint can be divided into various categories and which one would suit
your needs the best:-

What is solvent-borne paint?

Solvent-borne paints are made up of mixing paint in certain solvents such as lacquer,

urethane or enamel. The solvent base comprises a large part of the paint mixture due to which
the overall paint mixture has a large amount of VOCs (Volatile Organic Compounds). These
compounds are very harmful to the environment; therefore, these paints are losing popularity
day by day. Environmental concerns have made people use less of these paints.

What does water-borne paint mean?

Waterborne paints are the ones that use no solvents that would be harmful to the
environment. Water is the only solvent these paints use. You can apply waterborne enamels
on primers or bare metal or present coatings. Waterborne paints have become popular
nowadays because of environmental concerns. These paints don’t cause any kind of harm to
the environment and also don’t contain any VOCs like the former. Modern technologies have
let us develop waterborne paints which match the quality of already existing paints without
causing any harm therefore many paint shops prefer this paint type.

What are the stages of painting a car or commercial vehicles?

Stage 1: Primer

Primer is the first stage of the automotive painting process. The primer serves several
purposes like levelling the surface of the body, overcoming manufacturing defects if any. The
primer also prevents the body from rust, heat differences, stone chips, UV light etc.
Stage 2: Base Coat
This is the second stage of the painting process which follows the primer coat. This is the
stage where visual properties and colour effects come into being. The base coat is usually of
three types: solid, metallic and pearlescent. These three categories differ on the basis of paint

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quality. Solid paints have no sparkles and comprised of solid colours. Metallic paint has all
the glitter and shines that you see in cars nowadays.

Stage 3: Clear-coat

Clear-coat is the last part of the painting process where a transparent coating is put on the
base coat which comes in direct contact with the environment. It must be durable enough to
resist abrasion and chemically stable enough to withstand UV light. This coat can be either
solvent or water-borne.

After all these processes are carried out, the automotive paint process comes to an end. All
these processes are used in every case but the outputs may vary depending upon the type of
paint you have chosen for your car!

What are the types of automotive paint finishes?

1. Metallic Paint:
In basic form, metallic paint is the application of colour followed by an additional layer of
lacquer (also known as the clear coat). Additionally, a small quantity of powdered metal is
added into the paint layer to deliver a much more appealing shine than the basic solid
paints. The metal particles reflect more incident light than the solid colours which lead to
a better paint output than the solid paints.
2. Pearlescent Paint:
Pearlescent paints are the compilation of basic paint components included in the metallic
paint where the metal powder is replaced with ceramic crystals also known as mica. The
unique property of mica is that along with reflecting the light, it refracts the light too. This
refraction gives a deep colour to the paint along with the shine. The colour changes
according to how you look at it. The pearlescent paint has a clear edge over the metallic
paint which is visible if you have a glance at it in the direct sunlight.

The automotive paint can enhance the look of your vehicle but at the same time, can also
make it look shabby. Your car experiencing even a minor scratch can damage your paint. It’s
important to get your vehicle’s paint protected if you want to maintain the new-like shine.

PAINT INDUSTRY IN INDIA

Foundation for paint was laid in the year 1902 with the setting up of Shalimar Paints in
Calcutta. It was during the and after the World War II. That large number of paint
manufacturing units was set up in India. Since then the Indian paint industry has made
substantial progress.

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The paint industry has come to the recognition as an important sector in the national economy
in producing industrial coating and decorative paints. Decorative paints available in wide
range of combination account for 70% of the coatings total production. While industrial
paints share the balance of 30%. This rate is diametrically opposite to the trend in the
industrialized countries where industrial paints account for 70% and Decorative paints for the
balance of 30%.

The Indian paint industry is at the crossroads. All most all-major paint companies have
expanded or are expanding its capacity substantially. With demand rising slowly competition
is becoming increasingly intense.

The decreasing growth rate has made the paint companies to woo customers aggressively.
The customer is being offered 10% rebate in most products, Unheard in the industry so far.
Most companies have increased their discounts to their dealers to unimaginable level dealers
are offered higher credit levels, flexibility in payment, foreign trips for selling even low value
products and the like. The increasing competition to offer solutions through technology has
made all the paint make as offer a large number of shades through computerized colour
dispensing system.

EMERGING TRENDS AND TECHNOLOGIES IN THE

INDUSTRY

An Eye toward the Future of Auto OEM Coatings

Coatings World asked a number of experts in the automotive OEM market their thoughts on

future trends in the industry.

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Coatings World: What are the latest trends and technologies driving the market for auto

OEM coatings, and what technologies is R&D focusing on (self-healing, smart coatings, etc.)

Patrick Bourguignon, AkzoNobel director for Automotive and Specialty

Coatings

We see a growing shift to sustainability and sustainable paint systems. This focuses on raw

materials, alternative eco-material and waste materials. Low-VOC coating systems are in

growing demand. The trend toward electrification is driving battery coatings, and the trend

towards self-driving vehicles is driving our work on radar-transparent and radar-visible

coatings. Finally, functional coatings and surfaces play a big role – providing our customers

with self-healing and high scratch resistance coatings, among other things.

Kevin O’Connor, director of Global Marketing & Product Management

at Axalta

There are several trends influencing the new product development activities with Axalta

R&D:

• Sustainability: Sustainability is important to how we think of our business at Axalta—from

the way we make paint, to the way our customers process and apply our paint, to the
sustainable technologies that our products support. From an environmental sustainability

perspective, Axalta is committed to a robust set of enterprise-wide sustainability goals

including reducing VOC emissions by 3%, reducing energy use and GHG emissions by 5%

and reducing water use by 10% by 2022. Our R&D team is also committed to developing

technologies that lower the overall energy consumption and VOC emissions at our

customers’ paint shops. Lower VOC waterborne formulations and 80°C bake technologies

are a primary focus in our R&D. Higher paint transfer efficiency technologies including

digital paint application also reduce the overall paint consumption and enable two-tone roofs

without the incremental energy required in a second pass. Finally, Axalta’s plastic coating

products support light weighting for decreased fuel consumption while our Voltatex®

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product line enables extended lifetime and higher voltages in EV motors.

 
• Future mobility: Axalta has developed novel modeling tools and coating formulations that

enable 77 GHz radar positioning behind plastic parts without compromising coating

appearance. Without this capability, long-range radar would require the need of unsightly

radomes installed around the perimeter of the vehicle. In addition, as more ridesharing is

adopted and vehicles are subjected to longer duty cycles, the performance of coatings is

expected to increase, including improvements in chip and scratch resistance and anti-

microbial and haptic features inside the car.

• Advanced manufacturing: As real-time analytics, artificial intelligence, cloud-based data

collection and sensor-technology take hold in the OEM paint shop, there will be continuous

pressure to decrease the overall cost to coat. This cost, typically estimated to be between

$500-$700 per vehicle, includes capital, labour, energy, materials and waste

management. Axalta’s R&D team continues to develop products to reduce this overall

cost. 80°C low bake technology (reduced energy and capital) and Digital Paint Technology

(reduced energy and labour) are examples of this product development effort.

 
• Customization: Consumers’ desire for vehicle customization continues to grow, and

“custom color” solutions and two-tone roofs are desired. Axalta’s digital paint technology

will provide custom color options and individualization at the lowest overall cost to coat.

David Cranfill, BASF technical director for OEMs: As companies explore connected

autonomous vehicles and new alternative powertrains, coatings need to adapt. BASF’s

surface solutions will give those vehicle surfaces new functions. Coatings will have to reflect

LiDAR, not interfere with RADAR, and interact seamlessly with various autonomous

sensors, adding to the reliability of the entire transportation ecosystem.

This is driving innovation within the industry to formulate coatings that are compatible with

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the sensors, but stay within the desired color space. The coatings also need to be self-cleaning

and ice- shedding to keep sensors free of dirt and debris that could stop them from working.

The shift toward alternative electric powertrains and away from fossil fuels also puts the

focus on new technology, the environment, and sustainability. Sustainability is a value that

BASF shares with its business partners.

Coatings will have to handle the heat management requirements around batteries and electric

motors. At the same time, external coatings with infrared-reflective pigments will keep the

cabin cooler to reduce the need for extra energy to power air conditioning. That lets the

electric car go farther on a single charge.

Several sustainability trends continue to drive market innovation, including low-temperature

cure and integrated processes to compress the paint shop footprint and reduce energy usage.

BASF is also working with governments around the world to meet new standards for lower

VOCs.

Rebecca Liebert, executive VP, PPG

 We believe the auto industry is at the dawn of an exciting new era of opportunity. Our ability

to successfully transition to EVs, autonomous vehicles and other new mobility solutions will

depend not only on their performance, reliability, affordability and convenience, but

alignment with the emerging needs and values of those who will build them and buy them.

We continue to make significant progress in developing functional coating technologies and

processes that support the needs of our OEM customers.

Whether the challenge is reducing emissions, enabling increased use of lightweight materials

and mixed metals, ensuring precise color match across multiple application environments, or

cutting energy costs and resource consumption, our people are listening, innovating and

delivering solutions that drive success.

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Suppliers of industrial painting technology are offering exciting innovative solutions to the
challenges facing OEMs. The spectrum ranges from pre-treatment, equipment and application
technology and paint systems, right on up pre-painted foils for component manufacturing.
Whether compact cars or luxury limousines, colour and paint provide the vehicle with an
appearance that promotes brand recognition and thus good sales figures. And much more:
strong, long-lasting resistance to unavoidable mechanical, chemical and physical “attacks”
during the car’s service life is absolutely essential. At the same time, global competition
necessitates an ever more efficient, sustainable painting process.

A balancing act, one in which the paint industry is continuously working on the improvement
of existing options and the development of new ones.

Conservation of resources in pre-treatment

In order to provide bodies in white and metallic car parts with effective corrosion protection
and ideal paint adhesion, they are given conventional zinc phosphating during pre-treatment.

However, phosphating processes which involve the use of heavy metals are being replaced to
an ever greater extent by nano-ceramic processes. This trend is based on the ecological and
economic advantages of these technologies, which are compatible with a multitude of metals:
The products are free of heavy metals which significantly reduces the costs and effort
associated with wastewater treatment, disposal, equipment cleaning and system maintenance.
Furthermore, the coating can be applied before liquid painting or powder coating by means of
an immersion or spray technique at room temperature. This results in further cost reductions.
New technologies such as CO2 snow-jet cleaning are displacing conventional power washers
more and more frequently for the pre-treatment of attachment parts and interior components
made of plastic. On the one hand, this is due to savings amounting to as much as 50% for

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investment costs, 20% for operating costs and up to 80% for floor space requirements. Also,
such compact systems are easy to integrate into the painting line.

Painting with fewer process steps

Filler-free painting systems are on the rise all over the world in the field of vehicle painting –
in the premium segment as well as for smaller, cheaper models. The function of the filler coat
is usually fulfilled for this so-called integrated concept by a water-based paint system. In
comparison with conventional painting processes, this makes it possible to reduce energy
consumption by 15% to 20%, by eliminating the intermediate drying process. At the same
time, the filler-free painting process reduces solvent emissions and eliminates the need for the
system’s filler application section. In the meantime, these economic and environmental
advantages have triggered a trend towards a 2-coat finish without primer for coating plastic
attachment parts. Solutions for injection moulded interior parts such as trim strips are already
available which provide the components with a fine, high gloss finish using just a single coat
painting process.

Only as much paint as necessary

In order to realise potential savings in the painting process, possible causes of loss such as
atomiser over-spray must be eradicated, as well as losses due to colour changeovers, during
application and in the paint supply lines. Savings of this sort can often be implemented
quickly and in a targeted fashion by modifying specific system characteristics. One approach
involves increasing transfer efficiency by using a spray pattern that is matched to the
geometry of the part to be painted, as well as electrostatically supported paint guns and high-
speed rotary atomizers. Transfer efficiencies of greater than 90% are achieved with the latter.

Where hydro paints are concerned, new electrical isolation systems which are located directly
on the robot arm are also making a contribution in this respect. They allow for minimised use
of rinsing agents and shortened colour changeover times as well. Beyond this, the fine

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atomisation patterns achieved with electrostatic high-speed rotary atomizers open up the
possibility of reducing air sinking speed in the booth, which results in energy savings.

The increasing degree of automation through the use of robots, for interior painting of auto
bodies as well, is also leading to reduced paint consumption. Further advantages include
improved reproducibility of painting results and less scrap. Another positive side effect of
using painting robots is the fact that it’s easier to switch from fresh exhaust air systems to
recirculating air for conditioning the paint booth. This can result in energy savings amounting
to 60% to 70%.Intelligent paint logistics also result in reduced material consumption.

For example: - pipe-clearing technology makes it possible to recover unused paint from the
feed lines and to dose defined quantities of paint to the application equipment for special
paint coatings.

Extending the new car effect

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Mat clear lacquers are in fashion. Robust, easy to care for and relatively UV tolerant, they are
currently providing highly individual finishes, particularly on small series production
vehicles. One of the focal points of high-gloss clear lacquers is increased scratch-resistance,
which extends the new car effect. Innovative developments are available in this area, which
combine the advantages of “hard” inorganic substances and “soft” organic substances. In the
meantime, a nano solgel process is also being used for mass production by Tier suppliers.
This is applied to high-gloss anodised, decorative aluminium parts in order to give them a
transparent protective coating which is highly resistant to scratching. Further applications for
sol-gel technology are currently being tested by the automotive industry. The significance of
UV paints in the automotive industry continues to grow as well – for painting plastic as well
as metal substrates.

In addition to excellent resistance to scratching, other reasons for this include the possibility
of reducing energy and raw materials consumption, as well as harmful emissions. A further
advantage is greatly reduced paint drying time. Thanks to UV curing in an inert gas
atmosphere, a hurdle has been cleared in the drying of large complex components such as
powertrain sub-assemblies.

From the pre-painted foil to the component

The trend towards lighter, less expensive automobiles which use less fuel, as well as electric
cars, will certainly be spurred on by foil technology. Foils made of, for example,
polycarbonate blends are coated during an initial process step with a water-based paint,
allowing the components to be deep drawn.

A clear coat consisting of a dual-cure UV paint which is first thermally dried and covered
with a protective foil is then applied. After the foil has been cut to size it’s deep drawn to the
desired shape, for example as a roof module or a spoiler. Subsequent UV curing provides the
component with a scratch resistant surface. Strength may be added by means of foaming in
from behind.

The automotive industry is literally awash with new techniques and processes for painting
cars better. Each development is more ingenious than the last yet few have succeeded in
gaining widespread adoption. Trends are just starting to emerge, however, and they are
largely driven by the industry’s need to clean up its plants.

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Regulatory driver for clean paints

The driving force in Europe is essentially new EU legislation that comes into effect in 2007
and that places stringent demands on automakers to reduce VOC (volatile organic compound)
emissions from paint plants. As a result, automakers have been changing over, en masse,
from solvent-borne coatings to water-borne coatings, at least for the colour coat of the three-
coat automotive paint process. Also known as the base coat, the color coat is responsible for
the bulk of the undesirable VOC emissions and has thus been the target of the most effort.

The change from a solvent- to a water-borne base coat does not require particularly ingenious
solutions, although investment is likely to be involved because of the longer drying times of
the water-borne materials and the need for equipment made from stainless steel. Local
regulations in Germany mean that all automotive paint plants in Germany already meet the
forthcoming EU standard, says Dr Thomas Lueb, head of OEM marketing Europe at BASF
Coatings. He estimates that only a few paint plants, perhaps around 10 still have to comply
with the new EU rules, and these are mainly in France, Spain and the UK.

Two of the first ingenious ‘clean’ paint concepts to attract interest from the automotive
industry were based on powder paint material and both are now looking to have a future.
Powder paint is the most environment-friendly of all coating materials because it is
completely solvent-free whereas a water-borne paint still contains 10% solvent. In 1996,
BMW began operating a highly innovative paint line at Dingolfing that uses powder paint for
the top coat (also known as clear coat) of the 3-, 5- and 7-series models. The main suppliers
involved were Durr (for equipment) and PPG (for paint materials). And shortly afterwards,
Mercedes’ Rastatt plant implemented a similarly innovative process for a powder slurry top
coat with the introduction of the A-class.

BASF developed the powder slurry material. Although neither of the solutions appears to
have attracted interest from other automakers, both BMW and Mercedes have announced
further investments in their powder paint technologies within the last 12 months. BMW has
indicated that it will adopt the powder paint process at its new Leipzig plant. And Mercedes
is expanding its powder paint application at Rastatt with the introduction of the new A-class.
BASF claims to have developed a second generation powder slurry process for the new A-
class that resolves all the previous issues of appearance and scratch and chemical resistance.
“The quality of finish is now among the best that exists in the automotive industry,” claims
Dr Lueb.

Powder paint is by far the most environment-friendly coating material and could dominate
the automotive coatings market one day. As discussed above, proven solutions for the top
clear coat exist. For the primer coat, several applications are also operating, particularly in
GM and DaimlerChrysler plants in North America. However, the technology to change
colours with powder coating systems is not yet fully proven. Paint specialist Haden is
working on a solution but until they have the answer, powder is not yet a real option for
colour base coats or for primers that are colour-matched to the base coat.

Colour changeover is a challenge

One of the challenges that continue to bug the automotive industry is how to deal with mixed
coloured cars coming down the line. The problem is that by cleaning out the equipment to

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ensure that one colour of paint does not contaminate another, a certain amount of paint is lost.
Yann Vincent, manager of Renault’s Douai plant, estimates that a colour changeover costs
€10. Because of this cost, the plant paints vehicles in a minimum batch size of five that are all
the same colour. By processing vehicles in batches, the paint shop represents a major
exception for the Douai facility because in all the other areas, the focus is on adhering to a
production sequence that matches customer orders exactly. With many OEMs moving over to
build-to-order concepts, the cost of colour-changeover has become a more important issue. In
answer to this, Toyota and ABB Japan have collaborated on a paint cartridge system that can
paint every car a different colour without any wastage. It is one of the industry’s new and
ingenious technologies that are starting to gain some success. Toyota obviously had a head
start with the technology and has installed it at several plants around the world including the
Inabe factory in Japan and the Valenciennes facility in France.

Two years ago, ABB started marketing the solution to OEMs other than Toyota and has since
made sales to Proton and to PSA. The French company is to install the innovative CBS
(cartridge bell system) at its Poissy plant over the next two years on a new paint line it is
building to complement the two existing ones. The basic principal of the CBS concept is that
each cartridge contains enough paint for one coating operation on one vehicle. The painting
robot, which is a standard ABB model equipped with a special spray gun, automatically
changes cartridges between vehicles, and the cartridges are automatically refilled. This all
takes place within the cycle time of the production line. For colours that are common the
cartridges are dedicated. For others, the cartridges are cleaned out between one colour and the
next. PSA will use the CBS concept for applying colour-matched primer and colour base
coats, both of which are water-borne.

CBS also solves one of the problems associated with water-borne paints, which is that they
conduct electricity whereas solvent-borne paints do not. This is important because, for the
electrostatic spray painting process in current use, the paint has to be electrically charged.
According to ABB’s Philippe Alluyn, PSA has shown that the insulated design of the CBS
gives a 3% increase in application efficiency and requires less maintenance compared to the
alternative solutions for applying water-borne paints. This, he adds, is in fact the main reason
behind PSA’s decision to opt for the new technology.

Evolving role of the Supplier

Alongside the barrage of new paint materials and processes, one very strong trend that is
emerging is the evolving role of the supplier. OEMs are increasingly subcontracting the
management of paint materials to their paint suppliers. “Core competence is the issue here,”
comments BASF’s Dr Lueb. “Combining our competence in the area of chemicals with the
OEM’s expertise in building cars is the most efficient solution,” he believes.

Since the end of the 90s, BASF has been entering into system supply agreements with its
European customers, a practice that has been recently spreading to China, Japan and South
America, and is also beginning in the NAFTA region. “New plants in particular are awarding
these forms of contract as they do not already have teams of personnel employed in paint
management functions,” Dr Lueb reports. While the OEM is responsible for running the paint
process, it is the role of the supplier to take responsibility for the paint materials, the material
handling and logistics functions, the quality control lab and all paint-related consulting
services. In most cases, BASF is paid according to the number of cars painted rather than

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according to material consumed. The OEM and its supplier set annual cost reduction targets
for the total process varying from 0.5% to 5%, depending on the paint shop.

Eisenmann, the German equipment company, has taken the paint shop supplier role even
further. At Smart’s Hambach plant, Seat’s Martorell facility and Volkswagen’s factory in
Brazil, Eisenmann operates contracts whereby it retains ownership of the paint shop. It
operates the facility and is paid per unit.

It is clear that paint shop concepts are in constant evolution.

INDUSTRY ANALYSIS

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  COMPETITIVE FORCES MODEL (PORTER’S 5 FORCES)

Threats of
New
Entrants

Rivalry
Bargaining Bargaining
among
Power of Power of
existing
Suppliers Buyers
firms

Threats of
Substitute
Goods/Servi
ces

Porter’s Five Force as a useful tool for analyzing the industry attractiveness. Porter’s work
looks at the industry structure and the company’s competitive strength and positioning
relative to that industry depicts the five forces;
Threats of New Entrants:-
 Big players have high brand image and quality products
 Good promotional activities to attract customers
 It involves the knowledge of the market and the resources
 The threats of new entrants is low
 It was estimated that 18-20% of the total raw materials used in the whole industry are
imported

Bargaining Power of Buyers:-

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  Bargaining power of buyers is medium
 Households and industrial users are the main customers of this business
 For the housing requirements, the buyers are building the contractors who can buy in
bulk and the end people who paint this house
 Customers are more prices sensitive because for them number of options are available
and decisions are made based on the quality, price and differentiating factors like
weather protection, environment friendly paints.

Bargaining Power of Suppliers:-

 Raw Materials- pigments, binders, additives, solvents etc
 Raw materials crude derivatives have high price fluctuations which is affecting
business profits.
 Titanium Dioxide is one of the key pigments which used in the production of the paint
and is facing the global supply shortage.

Competitive Rivalry:-
 Current market growth rate can provide ample room of the opportunity to the business
to flourish.
 About 80% of the organized sector contributed only by the top 3 players.
 Paint which provides the spray paint into the customized colors whichever color the
customer wants.

Threat of Substitute Goods/Services:-

 There are many substitutes for the paint in standard colors but with the customized
colors in paint can gives the opportunity for the business in the market.

 FACTOR ANALYSIS (PEST ANALYSIS)

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 a. Political Factors

b. Economic Factors

c. Social Factors

d. Technological Factors

 Political Factors: - Political factors include government attitude to the employment,

consumer protection, environment, taxation, trade restrictions, societal reforms as
well as the burden of bureaucracy and the level of corruption. Now-a-days, the
government bodies make in India initiatives helps Indian brands to expand.

 Economical Factors: - Economical factors include the slowdown the economy due to
the covid-19, downfall in the demand of paint, effect of the downfall in the rupee can
break-down the industry or they are increasing the price of the product.

 Social Factors:- Socio-cultural factors includes the major investments in the social
sustainability, shifting consumer preferences from the traditional whitewash to high
quality aerosol paint/spray paint, consumer preference for trusted quality and the
higher levels of performance will increase the market share of the organized players
for the bathroom fittings, by offering the interior design and all types of the décor
solutions under the one roof, emerging with the middle class in India with the
disposable income, seeking upscale housing.

 Technological Factors: - Technological factor includes the development of

technology in manufacture and infrastructure. Change in technology is happening
more and more frequently. Home décor tips through mobile app and website, by
providing the color consultancies to the consumers.

 SWOT ANALYSIS

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 a. Internal (Strengths /Weaknesses)

b. External (Opportunities/ Threats)

 Strengths:- a) Importance of brand image as barriers to new entrants

b) Good technology backup

 Weakness:- a) Scarcity of raw materials

b) Requirement of high working capital
c) Real estate in a depression phase

 Opportunities:- a) Fiscal incentives provided by the government

b) Shift from commodity market segment to FMCG

c) Rise in disposal income of the household

 Threats:- a) Foreign companies are moving as sole players (e.g. Valentino Paints
from Italy)

EMERGING TECHNOLOGIES IN THE PAINT INDUSTRY

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  Identification of relevant emerging technologies

The Global Automotive OEM Coatings Market size was valued to $7.23 billion in 2021, with
a volumetric turn-over of 1706.9 kilotons; is predicted to garner $13.12 billion by 2030 with
an expected volumetric turn-over of 2,864.1 kilotons, demonstrating a respective CAGR of
8.1% and 7.0% from 2022-2030.

Automotive OEM coatings are paints applied to coat the surface of automobiles for both
protection of the vehicle surface as well as for enhancing its aesthetic appearance. These are
majorly solvent-borne, waterborne, powdered, and of such other types. These coatings along
with increasing the durability of vehicles, offer high protection shield against extreme
temperature ranges, intense ultraviolet exposure, acid rain and other foreign particles. Due to
stringent regulatory standards, the automotive OEM coatings are formulated as per the
environment standards abiding to environmental norms.

We work with the original equipment manufacturer (OEM) industry to safeguard a wide
range of products and equipment. US Coatings has the experienced staff on hand to
determine the right OEM paint formulation no matter what abuse a product or facility is
subjected to.
Our staff performs individual project line evaluations to understand how to design the most
effective and efficient coatings system available. If the operating environment poses
challenges for the coatings system, we collaborate with our customers to devise a solution
based on the demands of the particular site.
Based on our initial analysis, we begin developing a custom OEM paint system tailored to the
customer’s needs. Our staff can also provide a cost analysis for the job and assist in the
proper equipment selection for the application process.
Whether it’s trucks or trailers, BBQ grills or wind turbines, we have the ability and expertise
to accommodate jobs of all sizes.

Market Dynamics and Trends

The automotive OEM coatings market is gaining traction due to growing demand for
commercial utility vehicles, higher inclination towards efficient transport, increased trend of
possessing personal automotive transports especially in premium vehicles segment, as well as
growing demands for passenger cars.

Besides, market trends such as, higher preferences towards light weight vehicles offering
lower fuel-consumption and higher efficiency, plus growing demand for electric and hybrid
vehicles offering lower carbon emissions, are expected to create new opportunities in the
global automotive OEM coatings market throughout the forecast period.

However, high cost raw materials, strict environmental emission standards, and concerns
related to use of solvent-borne automotive coatings that impose the risk of environmental
hazard, are the factors responsible to impede the growth of global automotive OEM coatings
market during the forecast period.

Moreover, investments in R&D activities for new production alternatives, strategic

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collaborations, and new product launches by market players, are to create lucrative
opportunities in the global automotive OEM coatings market in future.

Market Segmentations and Scope of the Study

The global automotive OEM coatings market share analysis is based on type, layer, vehicle
type and geography. Based on type, the market is segmented into Solvent-Borne, Waterborne,
Powdered, and Others. Based on layer, the market is fragmented into Primer, Basecoat,
Electrocoat, and Clearcoat. Based on vehicle type, the market is divided into Passenger Cars,
Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Others
(Motorbikes). Geographic breakdown and analysis of each of the previously mentioned
segments include regions comprising North America, Europe and Asia-Pacific.

Geographical Analysis

North America region is expected to account for the major market share in the global
automotive OEM coatings market, over the forecast period owing to the increased adoption
of automotive OEM coatings. Furthermore, increase in technological advancements, well-
established automotive infrastructures as well as higher adoption of electronic vehicles is to
fuel-up the market growth in this region.

Asia-Pacific region dominated the global automotive OEM coatings market, and is expected
to maintain its dominance throughout the forecast period, growing with the highest CAGR
both by value and volume. This is attributable to increase in innovation and strategic
collaboration among the market players as well as growing demand for commercial and light
weight vehicles in this region.

Competitive Landscape

Some of the major market players driving the automotive OEM coatings market are BASF
SE, Axalta Coating Systems, PPG Industries, Kansai Paint, Nippon Paint, AkzoNobel, KCC
Paint, Sherwin-Williams Company, Arkema SA and Bayer AG among others.

The prominent players have adopted product launches and collaborations as their key
strategies to gain substantial share in the global automotive OEM coatings market.

 Application of OEM technology in paint industry

Success in the paint and coatings industry relies heavily on innovation and the continual
advancement of science and technology into new frontiers. As such, strategies for the

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adoption of new technologies directly impact the performance of companies involved in all
aspects of the paint and coatings value chain. To learn more about how different supply chain
members approach technology adoption, CoatingsTech surveyed several different raw
material and coatings manufacturers about the importance of megatrends and other key
drivers of technology adoption, as well as their thoughts on the role of marketing in directing
investments in innovation, the best mechanisms for determining real market needs, and their
specific approaches to innovation.
One area where the end-consumer interest directly ties into coating technology needs is in
color. Color trends, particularly in fashion, correlate directly to color popularity for coatings
and influence the styling efforts of coating companies. Pigment choices as well as coating
compositions are affected as companies aim to create the varied effects seen with new color
trends in fashion and other more obviously consumer focused end-markets.
Globalization will continue to be an important component. As paint manufacturers further
consolidate, companies that used to concentrate on a specific region now span several
continents. Suppliers with a reliable global footprint become critical partners for the
expanding manufacturers’ procurement and supply chain organizations, as they seek to
expand their tried-and-true inputs/processes across all regions.
In the paint and coatings industry, we are seeing continued corporate consolidation
worldwide, with several large coatings companies making important acquisitions recently.
We believe this is driven, in part, by a need for faster-than-market growth, as well as
companies seeking better synergies in areas such as manufacturing, organizational structure,
and purchasing. Local market needs, in terms of coating aesthetics, economics, and service
conditions, emphasize the need for regionally localized R&D, manufacturing, and marketing.
We see many companies moving to a “technology platform” approach, enabling better
commercialization of specialized products customized for local conditions.
  A driving force for the development of new paints and coatings is the increase in
regulations, the commitment from industry to reduce environmental hazards and risks, as well
as the carbon footprint of products. Many consumer-related product developments and
technical improvements focus on adding value for the customer, such as longer lifetimes of
coatings, ease of application, and absence of undesired properties such as smell or long
drying/curing procedures.
  Environmental regulations heavily influence how manufacturers formulate paint. As they
develop coatings, manufacturers must comply with existing environmental standards while
also keeping an eye on where regulations may go in the future. It’s imperative that raw
material suppliers have in-house experts who understand what’s required to meet
environmental standards in various places around the world, so they can partner with
formulators to help them reach their compliance goals, regardless of the application.
Ideally, raw material suppliers work with customers to help them understand how to achieve
compliance without sacrificing appearance, durability, and other important performance
characteristics. Raw material suppliers must understand that formulators are looking to
balance compliance, performance, and appearance; they can’t focus exclusively on any one
attribute.

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Specific environmental regulations will impact coating compositions. One of the largest
impacts is in solvent choice and the transition to higher solids or waterborne materials. These
regulations may impact states differently and sometimes only portions of a portfolio will be
available in particular regions of a country or an economic union like the EU. These types of
regulations impact the immediate customer, but the ultimate consumer of the coated material
is not affected as ultimate performance properties will be the same.
The reduction of VOCs is a key issue facing the coatings and adhesives markets, and is
playing a very significant role in shaping the paint and coatings industry at large. Years ago,
soap and water clean-up drove waterborne resin development for architectural coatings and
continues today with the zero-VOC coatings that surpass the durability and function of the
solvent-based alkyd paints they replaced.
Despite improving economic conditions since the 2008 global recession, downsizing of
residences in western markets has slowed the growth of architectural paints and coatings to
1–3% year over year. In emerging markets, we have very recently seen annual architectural
coatings growth drop from double-digit to a steady state rate of 4–8% as years of
overbuilding settle to more sustainable levels. Latin America, the Middle East, and the other
regions in Asia are virtually flat. Specific to environmental awareness, the nonstop drive
toward sustainability, lower VOC, and stronger substance restrictions continues to affect the
paint and coatings industry dramatically. In North America, nearly 50% of the top
architectural paint lines are now reporting [near] zero VOC, (typically defined as < 5 g/L of
VOC content via gas chromatography after tinting). This is a voluntary move by the industry,
given that up to 50 g/L VOC (as determined by U.S. EPA method 24) is permitted even in the
strictest of product categories and regions, such as the Southern California Air Quality
Management District (SCAQMD). In Asia-Pacific and China, we are seeing a slow but very
significant shift towards elimination of solvents and any ingredients that are perceived to
have negative impacts on human health. There is an intense concern regarding toxicity,
sensitivity, and unhealthy air/water, especially among the younger generations. This has led
to intense interest in coatings that can scavenge airborne toxins, thereby promoting potential
improvement of indoor air quality. For similar reasons, zero-odor materials are an important
trend. In the EU, REACH will achieve full implementation in 2018, and substances not pre-
registered will face intense requirements for testing and registration. This is a costly endeavor
for new technologies and innovative raw materials as the costs and time involved in
registration may inhibit the introduction of these materials to the EU-member countries.
Improved appearance continues to be a driver for the OEMs striving for luxury appearance on
all vehicle types. Productivity improvements that lower overall production costs during
manufacturing continue to drive coating technologies in the short-term; refinish shops as well
are looking for productivity enhancements. In the longer term, market drivers may change as
the consumer changes. Shared vehicles and autonomous vehicles may influence different
coating performance needs, ultimately driving new technology.

 Critical analysis of the OEM technology in paint industry

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Axalta uses a stage-gated model with detailed deliverables at each stage of development to
ensure the development of products meet real market needs. Business cases are presented
with market analysis to key stakeholders from all areas of the business as the decision
makers. A cross-functional team is assigned at the beginning of a program and is needed
throughout the development to allow each role to assess the program from a market,
financial, technical, process and commercial view.
Axalta bring applications experts, formulators, and researchers to the market to assure we
have multiple perspectives on the issues. Sometimes our customers are unable to fully
describe the situation they face, and we need to triangulate to truly determine what is needed
and how to fulfil this need. For example, recent changes to VOC legislation in China led the
market to look for water-based solutions to meet requirements. As it turns out, the most
environmentally responsible option for some of our customers and, of course, also compliant
with the new regulations, was a high-solids solvent borne product. On the refinish side of our
business, we engage directly with body shops all over the world. For some who have used
solvent borne refinish products for years, the switch to water is a learning process. Storing
tints and dosing colors brings challenges. To overcome some of these issues in the EU we
recently launched Syrox™, our latest waterborne product that sprays like solvent and is
packaged in a unique, easy-to-dose squeeze bottle. The combination of great paint and unique
packaging has helped ease the transition for a number of body shops in Europe.
Product field testing that is conducted early and often during the product development cycle
allows for instantaneous feedback. If field test data is used properly, it provides companies
with the ability to make adjustments to the product during the development process. For
example, in 2016, we launched Aristoshield, a water-based, urethane, alkyd paint line. During
development of this line, we relied heavily on data from customer field tests. The feedback
obtained provided us with quality information to make adjustments to the line at an earlier
stage in the process. And because of this, our Aristoshield line was one of our most
successful product launches in recent history, as the line provides both the durability and
application components desired by consumers and painting professional.
Currently, customers are focused on value above all else. Arkema strives to offer a wide
range of products that are engineered to match customer price-performance targets—“good,
better, best” choices that allow formulators to decide which offerings best meet their—and
the end-users—needs. Resins that take more effort or require special processes to produce
must offer additional value for our customers to be successful. And, of course, this raises the
importance of strategic relationships between us and formulators yet again. Although Arkema
has been practicing this for several years, in 2017 we have formalized our strength in
customer relationships under the phrase “Good Things Happen When Chemistry Gets
Personal.” By maintaining strong lines of communication, we can help them better identify
global end user customer needs. This lets us then develop products that excel across
geographies—products our customers can leverage to make their operations more efficient
and cost effective. As an example, we recently introduced ENCOR® 167S latex for high
performance caulks and sealants, a binder that does not require any external plasticizers in the
formulation. This was in direct response to formulators looking for ways to better develop
flexible low temperature products without the side effects that can result from plasticizer
migration, such as hardening, discoloration, glossing, dirt pickup, and mildew growth.

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  Extensive regular interactions with customers, particularly via technical collaboration, but
also with procurement, marketing, and manufacturing leaders is by far the most effective way
to identify unmet needs and dissatisfaction with current technology/raw materials. After
extensive vetting with multiple customers, these findings can translate into development
projects that will be formally resourced. Once up and running, this process never stops . . . at
any given time. Ashland strives to have many projects “on deck” and the best ones will get
resourced and “fast tracked.” A recent example of this was the effort that led to development
of Ashland’s Natrosol™ Performax line of thickeners. The development of Performax was
initiated after an extensive round of interviews with customers in Asia who expressed
frustration with the difficulty and time involved in handling dry water soluble powders in
paint manufacturing plants. Historically, powdered thickeners like HEC must be very
carefully dispersed in pH-controlled water or via high-shear mixing equipment to prevent
lumping of the polymer. If these powders were simply dumped into a paint let-down tank,
they would lump rapidly and, once formed, those lumps would be nearly impossible to
disperse. This would require filtering of the paint batch and loss of thickening efficiency.
Ashland has offered fluidized polymer alternatives, but the cost in use is comparatively high
(due to processing aids and shipment of water), and this does not satisfy the need to maintain
performance at a lower manufacturing cost. In response, Natrosol Performax was developed.
This alternative looks and performs exactly like conventional HEC, but contains patented
technology that allows the powder to be dumped directly into the low-shear let-down phase
of latex paint manufacturing without lumping.
Solutions tailor-made approach is central to meeting our customers’ needs and overall needs
of the market. By developing solutions specifically for a customer rather than trying to adapt
general products, we ensure specific requirements are met. For example, regionally we have
seen strong growth in real estate investment and building construction in North America and
Asia. Architects are increasingly turning toward powder coatings because of the combination
of environmental benefits and durability. This trend has been driving both volume and
innovation at Sun Chemical with the development and expansion of Benda-Lutz® MAXAL
EC aluminium flakes for use in powder architectural coatings. For decorative liquid and
powder coatings, designers are seeking multilayer effects similar to those developed for the
automotive industry. Sun Chemical understands the technology and can deliver the right
combination of products. In 2016, we introduced our SunMICA Deep Black Pearlescent
pigment, which is well suited for powder coatings applications to create deep, rich, and
reflective charcoal effects. Technology innovations in both effect and high performance
pigments continue to influence the automotive OEM coatings sector. We are especially
seeing unique applications for transparent, durable high performance pigments like our
newest Perrindo Red 179 in tinted clearcoat and in combination with effect pigments for
highly chromatic basecoat/clearcoat systems. Compact painting processes are simplifying the
process for three-layer topcoats and expanding their usage. From a new product perspective,
Sun Chemical introduced Benda-Lutz® COMPAL WS VOC-free, highly concentrated
aluminium preparations for coatings and inks in 2016. This new technology enables
customers to use the same product for waterborne, UV, and high solids coating chemistries
by providing broad compatibility that is optimized for long-term gassing stability in aqueous
environments. Additionally, each COMPAL WS preparation is delivered in an easily
dispersible granular form for safe and easy handling, improved shelf stability, and various

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transportation advantages. In addition, coatings producers are increasingly formulating and
making purchasing decisions to meet a clear set of socio-environmental requirements,
independent of regulations. As a result, we expect to see even further growth in high
performance pigments as replacements for heavy metal pigments. To meet this demand, Sun
Chemical has introduced Fanchon Yellow 184, expanding our product range for heavy metal
replacement. Several grades are available including zinc-free versions that provide customers
options to meet their stability and temperature requirements.
The automobile industry seeks to eliminate or minimize the extent of spray application
processes, space, and baking ovens because of the significant savings in material and energy.
One approach has already been successfully established—a wet-on-wet-on-wet-system (3-
wet) that mostly eliminates the primer oven in the coating process. An additional step has
also been taken—to remove primer surfacer application—with its function preserved by the
application of the first basecoat layer.
Waterborne, 3-wet paint systems have been developed to reduce VOCs and CO2 emissions.
These systems apply the primer coat, then basecoat and finally the clearcoat, after which
curing is accomplished in only one oven. This system has also eliminated the
storage/inspection step between the primer and top coat application. Hence, the overall time
of coating operations and paint shop size can be reduced to one-half of what is needed
without this innovation. More importantly, the amount of VOC emissions is reduced by two
thirds. However, some disadvantages are evident in this system, such as a telegraphing of
rough surface profiles of the substrate and primer layer and water in the base coat diffusing
into the primer coat. These issues may be mitigated by improved steel roughness, ED
appearance, and the use of a two-stage bake. Recently, a waterborne 3-wet paint system with
appearance qualities equivalent to a conventional three-coat, two-bake (3C2B) paint system
was developed by adopting base resins with a low glass transition point to promote levelling,
and then by reducing the melamine content of the paint to minimize shrinkage during curing.

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 CONCLUSION

The technologies employed in automotive coatings have become much more sophisticated
and efficient, and are evolving rapidly. The pace of performance improvement over the past
100 years has been dramatic, and it will continue to accelerate. Coating compositions and
application processes are inseparable and mutually dependent. As such, the final coating is an
elaborate assembly of multiple layers that perform in unison. Coating composition, together
with application procedures, film formation processes, and coated surface characteristics,
determines the appearance of a coating film.
Automotive coatings confront an almost limitless variety of environments and environmental
assaults. Targeting customers’ expectations, together with maximizing efficiencies and
meeting environmental regulations with new processes, has brought automotive coating to a
level not imagined 100 years ago. The appearance (color, gloss, and texture) of the surface
significantly affects a customer’s perception of product quality. Additionally, customer
expectations for the attributes given by the appearance of coatings continue to increase as
manufacturers compete to provide surfaces that offer enhanced surface characteristics.
The current paper gave a semi-comprehensive and up-to-date review of these new processes
and coating technologies to be of value to industrial practitioners and researchers. New
developments in automotive coatings were chronicled and discussed, and then related to
improvements in production technologies and paints. Modern automotive coating procedures
were also discussed in detail. Finally, the discussion covered recent trends in automotive
coating processes and potential future developments.
The industrial paints are slated to grow at an annual rate of 10 to 12 per cent per annum for
the next few years. The industrial paint manufacturers would benefit from the burst in the
passenger car sales. The two-wheeler industry has also registered a good show in the current
year. The commercial vehicles segment, a star performer last year with 33 per cent growth, is
expected to average a growth of only 15 per cent this year. However, the raising titanium
dioxide prices and the negligible growth in agriculture this year, will play spoilsport.
Considering the past trend, the paint industry is expected to show at least twice the growth of
Indian GDP in the ensuing years. The reduction of excise duties from a high of 40 per cent to
16 per cent in the last five years, has made the numerous small-scale units unviable, as they
no longer have a price advantage over the organised sector. This has helped the organised
paint Industry a lot. The industry is in a consolidation phase and only those Indian paint
companies with a strong technical alliance, better distribution network and an ability to
compete in the global markets would emerge victorious in the paint war.

BIBLIOGRAPHY
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[5]. Mr. Harjot Kaur and Mrs. Daljit Kaur “E-commerce in India - Challenges and
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