PAINT INDUSTRY STRUCTURE
The Indian paint industry worth Rs 43 bn has been consolidated over the past four years with the organized sector taking away share from unorganized segment.
The paint market is expected to grow 8-10%p.a over the next few years. The growth could be higher if the industrial sector picks up as the industrial paint segment is gaining more importance. Asian paints offer the best exposure being the market leader and an innovative company.
PER CAPITA CONSUMPTION OF PAINTS (KG):
While high excise duties hindered the growth of the industry in the early 1990’s, growth picked up after 1992, mainly due to reduction of duties and acceleration of industrial growth.
The growth of the paint industry is mainly attributed to urban markets. Consolidation is taking place in favor of large players; an increasing cost and intense competition afflict smaller companies.
The Indian paint industry worth Rs 43 bn has been consolidated over the past four years with the organized sector taking away share from unorganized segment.
The paint market is expected to grow 8-10%p.a over the next few years. The growth could be higher if the industrial sector picks up as the industrial paint segment is gaining more importance. Asian paints offer the best exposure being the market leader and an innovative company.
PER CAPITA CONSUMPTION OF PAINTS (KG):
While high excise duties hindered the growth of the industry in the early 1990’s, growth picked up after 1992, mainly due to reduction of duties and acceleration of industrial growth.
The growth of the paint industry is mainly attributed to urban markets. Consolidation is taking place in favor of large players; an increasing cost and intense competition afflict smaller companies.