Business Wire India | 27 Sep, 2017
With a projected compound annual growth rate of 13-14%, the Indian paints and coatings market provides immense opportunities for penetration and growth. The Government of Indiaâs mandate to expand the nationâs infrastructure, a construction boom, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and housing-for-all schemes are also augmenting market growth. However, low per-capita consumption and an evolving regulatory scenario make the Indian market landscape increasingly difficult to traverse. To sustain growth, companies will have to increase the current low capita consumption while keeping an eye on an evolving regulatory environment.
Frost & Sullivanâs âPaints and Coatings Market in India,â finds that demand for paints and coatings was estimated to be $7.3 billion in 2016 and is forecast to reach $13.8 billion by 2021. The research provides an insight into key trends, drivers, restraints, and focus products and segments for paints and coatings companies in India.
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âConsumer preference for green products would lead to increased adoption of water-based coatings that are aided by global and country-level regulations and legislations. In such a scenario, increased brand positioning as 'green' will drive product demand,â said Mihir Singh, Consultant, Visionary Science (Chemicals, Materials & Foods) Practice, Frost & Sullivan.
Further strategic imperatives for success include:
Adding or expanding capacities in emulsion;
Forging alliances with construction companies and contractors;
Focusing on technology tie-ups and investments in niche segments;
Customizing channel strategies for tiers of cities for penetration across geographical segments; and
Using exports to enter geographies with similar customer preferences
âThe emergence of e-hail and ride sharing services and emergence of upcoming urban centers will drive demand for new and used cars, propelling the demand for original equipment manufacturer and refinish coatings,â noted Singh. âFurthermore, projected growth in several manufacturing sub-sectors, such as thermal barrier, aviation, and food, will impel a surge in demand for coatings.â