Decorating walls as a practice dates back to as old as the stone age. Hand it not been for this awesome human practice of expressing themselves through images carved or painted on the cave walls, our entire tryst to learn about the past through excavation would have gone futile. Even now many in many rural part of the country, we find beautiful folk art being etched on the walls of the mud huts.
Fast forward to the modern city lifestyle wall paints form a very important part of our lives. No building whether it is a residential or a commercial one is considered complete till the time its walls are painted. However, the industry has gone through a sea change in the way it was used earlier. Going by the customer’s preferences, earlier, the focus was merely on the factors such as durability and long lasting effect of the paint, where as now, the emphasis is more on the decorative streaks that create the right kind of visual impact on the eyes of the beholder.
The Expanse Of The Paint Industry In India
Now, when we talk about the paint industry, it is broadly divided into two categories, namely, the Decorative Paints and the Industrial Paints. While decorative paints refer to paints used for applying on the exterior and interior walls of the buildings, industrial paints are used as automotive and protective coatings.
Accounting for a sumptuous 75 per cent of the pain Industry, the decorative paint industry in India has grown in tandem with the exponential growth of the housing sector in India. Some of the big paint companies in India include Asian Paints, Kansai, Nerolac, Berger Paints and ICI. These apart, there are many unorganized players who comprise of 35 percent of the market share of the paint industry in India.
The market demands have helped many big paint companies in India to capture the domestic as well as overseas markets. Paint manufacturers in India are also majorly catering to the overseas markets in countries like The United States, Canada, China, Australia, United Kingdom and Hong Kong. Estimated at Rs. 403 billion in the financial year 2014-2015, the paint industry in India is expected to touch Rs.709 billion by 2019-2020.
The Way Ahead
Decorative paints have consumption at two levels – one for new housings and the other for renovation of old residential as well as commercial buildings. While the new housing segment looks more lucrative, the other segment cannot be ignored either. Every house in India is painted once in two years. The renovation and re-painting has a lot of potential to boost growth of decorative paints.
Observing the market trends, major players are playing on the customer’s aspirational discretion to splurge on beautifying their houses and renovating old styled wall paintings into more textured and thematic designer paintings. And such initiatives have been very well received by the Indian customers who are increasingly waking up to sophisticated lifestyle.
In the past fiscals, factors such as demonetization had dampened the growth rate that is gradually picking up. Further, with the Indian economy predicted to grow at 7.5 person, consumer spend is expected to rise higher.
The housing sector is also expected to gain momentum boosting the overall growth of the paint industry to a large extent. With the real estate sector slowly but steadily recovering from the slump, new private as well as government housing complexes are expected to come up. Looking at the current disposable income of the customers the overall picture of the pain industry in India is looking bright for the years to come.