Indian Paint Industry

● 7thlargest globally
● USD 7.1 bn/ Rs 50,000 crs
● 30% of the market is unorganised
● Fastest growing market in the world with a 15 year
CAGR of 10% (1-1.5xGDP)
● Premiumisation
Global APAC Indian
● Oligopoly Value (USD Bn) 151.0 68.4 7.1
Volume (Bn Litre) 42.0 22.7 5.1
Realisation @ litre (USD) 3.6 3.0 1.4

Major Market
player
Aditya Birla Group’s Grasim to enter paints business with Rs
5,000 crore investment (ET Bureau - Jan 22, 2021, 05:17 PM IST)

"This move to enter the paints business will provide an

impetus to the Government’s vision of ‘Atmanirbhar Bharat’
and supports the supplier ecosystem of MSMEs by helping
them expand their existing raw material manufacturing
capacities,"
 Product Information (Paint)
Product Mix of Market Leaders
Decorative paints
Emulsions
Enamel
Distemper
Wood coatings
Putty
Primers
Thinner

Industrial paints
Automotive and
refinish coating
Opportunity Drivers for Future market
GI coatings Increasing nuclearisation and urbanization of families
Protective coating
Value migration/formalization
Shortening of repainting cycle
Powder coatings Growing demand from smaller towns and rural areas
Affordable housing initiatives from government
Increasing distribution reach
Innovations, upgradation and growth in premium segment
Infrastructure growth
 Paint Manufacturing process

Laboratory The new colour is

now compared
Weighing the against the
Each separate paint
has a unique raw materials standard colour.
Both are applied
formula. During this Warehouse stores all Dispersion thick as well as
In order to ensure
Tubes are filled
from the
development stage the dry raw materials. thin so that both
the paint's quality This includes pigments Pigments are Pre-mixing the mass tone and
that only quality
products are sold,
underside, with
the top already in
aspects are and extenders, binders -
comprehensively dextrine and Gum arabic
insoluble in the
binder. They
The pigments are Grinding the the undertone of
the colour can be
each batch is left place. Plastic tubes
supplied in dry to stand for a are closed by
tested. The
laboratory is also
At the start of the
production process the
therefore have to be
powder form, with pigments seen. There must
certain time in melting the
regularly dispersed in In the Ball / Send /roll not be a difference
the pigment order to check the material, while the
responsible for
inspecting the raw
dry raw materials are
weighed here accurately
the binder, that is to
components held mill the pigment Fineness between the new
stability. After this aluminium tubes
say finely distributed. colour and the
materials before to the gram and This dispersal occurs
together in
clusters. During
clusters are ground
further to the desired
inspection standard colour.
period another
laboratory check is
are folded step-by-
step and squeezed
they go into the prepared for transport in two steps: first
product and the pre-mixing fineness. During this carried out, and shut. Bottles are
to the next department,
monitoring the the pre-mixing
through pre-mixing
with a mixer and then
these are turned process the pigment Depending on the
nature of the
Colour after approval the filled, closed and
particles must not get paint is filled into then labelled. The
quality during the
production process.
department. The correct
amount is tapped off,
the final fineness is
to smaller clusters
and homogenously damaged as this may pigment and the inspection containers. final step is to
determined with a result in a change of purpose of the
In addition to the after which the weighed distributed paint or ink, the check that the
above activities, dry raw materials are
triple roll mill.
throughout the colour. The three
pigments are Stability packaging contains
particular attention binder. The tinting rollers rotate in the right amount
is also given to
added. As small
amounts of dry raw strength of the opposite directions ground to between
2 and 55 microns
inspection of paint.
research into new paint is now with different speeds.
materials are left behind (1 micron = 1/1000
raw materials and in the sacks during this relatively low, but
this will increase
The first roller turns
relatively slowly, the mm). After the last Filling
paint systems. process, the paint has to grinding the paint
as the pigment is second 3 times as fast
be checked at each finally has the
ground finer in the and the third 9 or 12
subsequent production required viscosity.
next production times as fast,
step against standards
phase. depending on the type
for the relevant product
of mill.
according to colour and
viscosity, and is adjusted
if necessary.
 Applicable Statutory Compliances:
A. Establishment Related Compliances
a) If Established Factory – Factory Act
b) If Under Construction – BOCW Act
c) Corporate & Brach Offices – State S&CE Act
d) Third Party Compliances - Contractors , vendors etc/

B. Labour Related Compliances ( Onroll & Contractul)

a) All Concern Central labour Laws with state rules
b) State/ Local Labour Laws – Minimum Wage rates, IR Act, Welfare Act, Professional Tax

C. Industry Specific Compliances

a) FIRE NOC
b) PESO Approval – storage of Hazardous Material
c) Hazardous Waste Approval – if Zero Discharge not available.
d) Pollution Control Board - NOC
e) Green Field Project Compliances
 Major IR Challenges in Paint/ Manufacturing Industry :

A. Business Requirement
A. Trained Manpower Availability : Blue Caller Hiring & Training, Absenteeism, high attrition.
B. Industry Hazards : Employee behavior towards Safety & Health.
C. Static Electric Safety
D. Product Contamination
E. Controlled Labour Cost
B. Employee
A. Employee Health issues : due to chemical components
B. Fare Standard HR Practices – Employee Welfare and Standing order applicability
C. Employee engagement & Motivation for further growth- Stagnant role stigma

A. Local Community
A. Local employment
B. Local Political favor
C. Liaoning with local authorities
D. Support from Local / Nearby community.
E. Appropriate channel for community grievances