Scenario of paint industry in India

‘Paint industry has grown to see a double-digit growth year-after-year’

the paint industry is working capital-intensive, having multiple product categories and different pack sizes. Asian Paints, for example, directly services over 17,000 retailers through 70-odd warehouses. Managing inventory in this complex distribution network is the key to success very much like the FMCG industry.

Moreover, factors like the media and housing boom, low interest rates, increasing disposable incomes and willingness of the consumer to spend more on home décor, should further accelerate this transition to a more FMCG-like set-up.

A few products only will fall under the broad definition of commodity items. Otherwise, mostly, the pattern followed will be as of FMCG, particularly in the context of decorative range.

 Expectation for the paint industry to grow and the demand drivers

The Indian paint industry has historically grown by 1.5 to 2 times of India's real GDP growth on a year-to-year basis. Now, with the Finance Minister announcing his vision of achieving 10% economic growth, it only augurs well for our sector.

Overall, paint demand will continue to be good and will be boosted by factors like low penetration levels of paint in India, policies conducive for growth of the construction industry by successive governments, excellent growth recorded by housing finance segment, increased government focus on infrastructure development, the media boom and growing middle class with increasing disposable incomes.

The industry has been doing well and is likely to do well in the future as well. Maybe, it is the only unique industry to have grown, year-after- year, at a double-digit growth. The growth drivers for the decorative business will include increase in disposable income and stable agricultural and housing sector growth. In industrial, it will be the growth in white goods & automobiles and improvement in infrastructure

http://www.financialexpress.com/news/paint-industry-has-grown-to-see-a-doubledigit-growth-yearafteryear/161438/2

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