Paints and their related items namely veneers, varnishes, shades, inks used in printing and engineered tars shield national resources from being corroded. These are progressively being utilized as a part of car building and manufacturing of solid parts. Financial improvement of our country has a very immediate bearing on the paint business. The paint business is always updating and reinventing its design and product patterns to meet the evolving requirements of the purchasers. The business is distinctly separated into two categories:
- Enriching paints
- Mechanical paints.
The enhancing paints represent a good 75 percent for each penny of the sorted out division. These are intended to secure important resources like structures. This market is profoundly delicate. The modern mechanical paints represent the rest 25 percent for each penny share and are intended to shield various machines from erosion that can happen during their lives and lead to ineffective production.
The total worth of the paints business in India is around Rs 95 billion. That’s a very big number. The present demand for paint products is evaluated at 650,000 tons for every passing year. This industry is quite regular and on-the-go in nature. There are around 26 paint units in the sorted out area, representing around 65 for every penny of the aggregate yield. The chaotic division has around 2000 units. The aggregate yield of paint products which is a matter of public record states a demand of around 4.5 lakh tons.
The most key players in this area cannot be stated without naming Asian paints. This paint giant has a piece of the overall industry of 44 percent for every penny. The next in line is Kansai Nerolac having 20% for each penny, Berger paints for 17 percent for each penny, ICI 12 for every penny and Shalimar paints 4.4 percent for each penny. Others amount to 2.6 percent for each penny.
Various other players from around the world also take aid from India’s widespread resources.
Berger is maintaining a strong stance in enhancing this section and is the pioneer in defensive coatings. Kansai Nerolac is the main player in car finishing and powder coatings. ICI (India) is a noteworthy player in beautifying emulsion category. The mechanical paints showcase is valuated at Rs.21 billion. India’s paint industry has a brilliant future. The numbers can go nowhere but up from here. This industry isn’t just surviving, but thriving. Any opportunistic budding entrepreneur would no doubt find this industry to be a very hot place at the moment.
Also the per capita utilization is likewise low at the moment. The interest for premium-classification paints is probably going to go up with the soar in development of business foundation. All the players are roaring loudly and the battle cry can be heard far and wide. The rising patterns of designs and innovation furthermore; the brilliant marketing schemes demonstrate that the business is probably going to solidify in the coming years. The paint giants are certainly going to have their cake and eat it too.
The global paints & coatings market size was estimated at 43.40 million tons in 2016 and is expected to grow significantly over the forecast period owing to its growing utilization in various end-use industries such as automotive, marine, construction and industrial to be the major ones.
Global paints & coatings market by material, 2014 – 2025 (Kilo Tons)
The global market in the past few years has grown moderately despite of various uncertainties such as the economic slowdown of major economies, negative & positive influence of the low crude oil price, fluctuations in value of U.S. dollars, the high growth rate of the U.S. automotive and construction industry, tenuousness of the recovery of various European nations and developments in regulatory norms globally.
Pigments Market Overview
The global pigments market size was valued at $20,023 million in 2015, and is expected to garner $26,598 million by 2022, registering a CAGR of 4.1% during the forecast period 2022. Pigments are solid materials that improve the appearance or impart color to the substrate on which they are used; they are black, white, and colored. Pigments are insoluble materials incorporated by physically mixing them with the medium. They have a high tinting strength as compared to the material in which they are added. Pigments serve three main functions: impart color to the medium, hide the substrate, efface the existing color, and enhance the strength of the paint film. The global pigments industry is broadly classified as organic, inorganic, and specialty pigments.
Organic pigments contain carbon atoms, are non-toxic in nature, or have low level of toxicity, thus are environmentally safe. These pigments are obtained from coal tar, petroleum distillates, succinic acid, aniline, and phthalonitrile. Organic pigments offer high color strength with durability and are available in wider range of bright colors, such as blue, green, yellow, red, and orange. They are usually less opaque and are chemically inert. There are various types of organic pigments, such as azo, phthalocyanine, quinacridone, and others.
Inorganic pigments are coloring materials obtained from metal oxides by the process of high-temperature calcinations. They possess high light fastness, high hiding power, non-migratory, non-wrapping, and non-bleeding properties. Inorganic pigments are capable of withstanding extreme weather conditions and high temperatures as compared to organic pigments; therefore, they are used widely in paints & coatings, plastics, construction materials, printing ink, and others. Types of inorganic pigments include titanium dioxide pigment, iron oxide pigment, cadmium pigment, carbon black pigment, chromium oxide pigment, complex inorganic pigments, and others.
Paint Pigments Manufacturers
The Paint Pigments manufacturers in the world comprise mostly of the prominent manufacturers along with some small manufacturers. The manufacturers typically enter into monthly contracts for the procurement of its raw materials as any sharp rise in raw material price could impact margins adversely. Manufactures from China contribute highly to the Asia Pacific production.
End-User application Industry
End Users Application of the Paint Pigments market includes automotive, consumer products, and aerospace among other segments. However, due to growing demand of it in automotive and transportation segment, it is the major consumer of Paint Pigments. In addition to this, residential coating and architectural products segment accounted for the second largest application segment which is expected to grow at high annual growth rate due to growing demand of Paint Pigments in architectural construction.
Threat of New Entrants
Considering the past and present Global Paint Pigments Market scenario, the target market is estimated to have medium threat of new entrants, owing to the strict environment regulation and high capital intensive nature of the industry. However, over the forecast period, the demand for paint pigments is expected to grow in consumer products, and aerospace segments due to wide variety of its end uses. Thus, in future it is anticipated that new entrants might enter into the Paint Pigments Market owing to the foreseen demand from the latter.
Indian Paint Industry Outlook
India is the second largest paint market in Asia with an annual demand of over two million tonnes. The Indian paint industry has been growing constantly over the last decade. Growth has been consistent with the GDP growth rate and in some years even higher. Over the past few years, the Indian paint market has substantially grown and caught the attention of many international players. The country continues to enjoy a healthy growth rate compared to other economies, backed by the increasing level of disposable income, and demand from infrastructure, industrial and automotive sectors. On the back of such advocacy, it is anticipated that the sector will post a CAGR (Compound Annual Growth Rate) of around 15per cent during 2012 to 2015, according Indian paint industry expert forecast.
The Indian paint market is expected to reach Rs 709 bn by 2019-20 from around Rs 403 bn in 2014-15. The per capita paint consumption in India which is a little over 4 kgs is still very low as compared to the developed western nations. Therefore, as the country develops and modernizes, the per capita paint consumption is bound to increase.
The rural market grew 20 per cent in 2013-14. Rural India’s incremental consumption expenditure is growing well. And, the rural sector has a major share of the decorative paints segment. Thus, any benefit to the rural sector’s disposable income is directly correlated to the paint industry’s growth.
Besides, decorative paints are marketing well, backed by large advertisement campaigns and dealership networks. In FY14, per capita consumption of paint increased to a little over four kg, of which the decorative segment contributed 73 per cent at Rs 29,638 crore. The remaining Rs 10,962 crore was contributed by the industrial segment.
The Rs 40,600-crore Indian paint industry is likely to see a 20 per cent compounded annual growth rate until 2016, says a study by business chamber Assocham.
The unorganised sector controls around 35% of the paint market, with the organised sector accounting for the balance. In the unorganised segment, there are about 2,000 units having small and medium sized paint manufacturing plants. Top organised players include Asian Paints, Kansai Nerolac, Berger Paints and ICI.
Demand for paints comes from two broad categories:
Paints and coatings industry is broadly classified into Decorative Paints, Industrial Coatings. The paints and coatings sector is fairly organised and the organised sector accounts for roughly 65% of the total market. There are about 2,500 small scale manufacturing units in the unorganized sector that primarily focus on decorative paint segment as it requires low technical know-how. Industrial paints segment is technology intensive and largely comprises of organized players. The overall paints and coatings sector was valued at around INR 350 billion in 2013-14. The sector is expected to witness strong double digit growth over the next five years.
- Decoratives: Major segments in decorative include exterior wall paints, interior wall paints, wood finishes and enamel and ancillary products such as primers, putties etc. Decorative paints account for around 75% of the overall paint market in India. Asian Paints is the market leader in this segment. Demand for decorative paints arises from household painting, architectural and other display purposes. Demand in the festive season (September-December) is significant, as compared to other periods. This segment is price sensitive and is a higher margin business as compared to industrial segment.
- Industrial: Three main segments of the industrial sector include automotive coatings, powder coatings and protective coatings. Kansai Nerolac is the market leader in this segment. User industries for industrial paints include automobiles engineering and consumer durables. The industrial paints segment is far more technology intensive than the decorative segment.
Decorative paints accounted for 74% of the overall paint and coatings market in 2013-14. The paints and coatings market in tier II and tier III cities and towns are growing at a faster pace compared to urban markets. With urban market almost saturated, the focus has now turned towards tier II and tier III cities and rural market where there is steady increase in paints consumption and disposable income. Paint consumption in rural markets is expected to grow between 18-20% in 2013-14. Demand for decorative paints in rural areas are seasonal, especially during festive and wedding seasons and after monsoon. Driven by huge investments in industry and infrastructure, western and southern regions are the fast growing paint markets in India. High performance paints are widely used in bridges, ships, fuel pipes, chemical tanks, road markings, electronic appliances, steel, etc.,
Asian Paints is the market leader in the decorative paint segment with over 50% market share, followed by Berger paints at around 18%. Kansai Nerolac is the market leader in the industrial paints segment with a market share of around 35%. Nippon Paints, Sherwin Williams and Jotun are some of the international brands with significant distribution networks in India. Goodlass, Nerolac, Akzo Nobel, Denso, CDC Carboline, Tyco Adhesives, Ashish Coatings, Graco are some of the prominent names in the high performance coatings segment
Major Players in the Market
The leaders in the organized paint industry in India are Asian Paints with over 40per cent market share, Kansai Nerolac (20per cent), Berger Paints (19per cent) and AkzoNobel (12per cent). Asian Paints is a market leader in the decorative segment while Kansai Nerolac dominates the industrial and automotive segment. The share of industrial paints in the total paint consumption is very low when compared to global standards. It accounts for 25per cent of the paint market with 75per cent of the paints sold in India for decorative purposes.
Currently all key players in the Indian paint market are in expansion mode. Asian Paints has enhanced its capacity at its facility in Himachal Pradesh (for powder coatings) and Maharashtra (industrial coatings) and Berger’s facility in Jammu started contributing to its top line performance, albeit on the lower side. Kansai Nerolac is putting up a green field plant at Hosur in Tamil Nadu and is carrying out expansion at its Lote Parshuram and Bawal plants.
The growth of the paint industry in India has been consistent with the GDP growth rate over the years. There is a shift in the market in terms of growing stress upon the usage of environment friendly paints. The companies have introduced various paints products which are eco friendly and less harmful to the environment in recent years. The market has also witnessed inflow of a gamut of innovative products which serve to the changing decor styles and improving aesthetic tastes of growing urban population. The revenues from the paint industry in India are expected to expand to USD ~million in FY’2017, growing with a CAGR of ~% from FY’2012 to FY’2017. Today, consumers are ready to experiment with choice of shades. Before buying paint products consumers must know that there exist such products in the market and must be able to take correct decision about which live up to their expectations. A few consumers buy paints only because they as easy to use, recommend by the painters, cost effective are green, which comes with many advantages etc. their buying decisions should be rational than emotional. This study aims to analyse the consumers’ attitude, preferences and satisfaction towards selected brands of paints. The study focuses on both household and commercial users/consumers of paints in Coimbatore city. Well recognised as Tire III, developing city of the nation. The following chapters provided an empirical discussion of the data collected and analysed during the filed survey.