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Reputation: 880 • Jun 21 3:06 AM

Let's discuss the paint industry. IndiIndian paint industry has grown at a 10.4% CAGR from FY08 to FY20. The paint industry is currently valued at almost INR 520 Bn. The organized sector has been commanding 70% market share, the remaining 30% is captured by the unorganized sector.
The first two quarters for FY21 were difficult for the industry as the shops were closed due to the lockdown resulting in declining volume in paint sales. It started recovering in the Q3FY21 due to the festive season and pent-up demand.
In India, decorative paints contribute 75% of demand while industrial paints contribute 25% of the demand. The real estate industry contributes 10% of the Paint industry’s revenue.
The improved sales in the automobile sector and consumer durables are expected to help the industrial paint segment for better volumes. Maruti Suzuki, the largest consumer of non-decorative paints in the auto sector, has sold almost double units YoY for March 2021.
The crude prices had a steep rise for this year after hitting down to almost USD 20/barrel at the start of Q1FY21 and currently at USD 74/barrel. Crude Oil is an important raw material for the paint industry.
Around 50% of crude-based derivatives are involved in the manufacturing process of the paint. The prices of packing materials have also increased by around 25% in recent months. To tackle this input price rise and protect margins, some paint companies raised prices.
The major four players control almost 70% of the market. JSW paints took entry into the market in FY20 and FY21 Grasim, part of Aditya Birla Group, announced their entry into the sector (Decorative paints) with an investment of INR 5000 Cr in the next 3 years.
The decorative paints segment is controlled by #AsianPaints with a 55% market share followed by #Berger with a 20% market share.
Reply (4)
4 Replies
Rita @rita-B1Wzrzsiu
Jun 21 4:26 AM

Please share list of Listed paint companies, which one is best, better, good for healthy returns in next 05 years.
Jun 21 4:29 AM
Akshayj @akshayj
Jun 21 2:29 AM

Indigo paints,kansainer,asahisong
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Reputation: 2,005 • Yesterday 11:04 AM

Three type of peoples who make profit everytime
Long term investors
Option sellers
institutional investors