Initializing...

Top Retail Brands

Indian Paints: Profiting Corridors

The soaring industry offers a pallete of exciting colour range and schemes to lure customers this festive season

Tags: Paint Industry

BY Indian Retailer Bureau  |  comments ( 15 )  | 

The unparalleled growth on the housing sector front, brisk urbanisation, availability of easy housing loans, all have been instrumental in the growth of decorative paint segment, which comprises 70 percent of the 21,000 crore  paint industry in India. An average growth of about 18 percent in the automobile sector contributes 50 percent to the revenues in the industrial paints segment. Industrial paints add 30 percent to the paint industry revenue in India. New developments in roads, ports, etc add up to the revenues of protective coatings for civil applications.

In the last ten years, the industry has grown at a compounded annual growth rate (CAGR) of 18-20 per cent.

Paints can be classified into two segments 1] Decorative Paints 2] Industrial Paints

Decorative Paints are meant for the housing sector. Distemper is affordable and used in the suburban and rural markets. Interestingly, 20 percent of all decorative paints in India are distempers.

Indian paint products are highly in demand in countries of United States, China, India, United Kingdom, Australia, Pakistan, Hong Kong, Canada etc.

Prominent destinations to source paint products from India include:Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat, Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur, Tirupur, Ludhiana, Bhilwara, Erode, Jodhpur, Rajkot, Noida, Panipat, Amritsar, Thane, Shanghai, Pune, Karachi, Vadodara, Kanpur, Madurai, Gurgaon, Hyderabad, Navi Mumbai, Tiruppur, Faridabad, Indore, Ghaziabad, Varanasi, Faisalabad, Alappuzha.

Emerging trends in the decorative industry
    * Consumers are increasingly involved in making purchase decisions.
    * Consumers expect better and more relevant functional benefits from paints.
    * Emulsion paints are outgrowing the industry growth rate.
    * Trend of dark shades complementing light shades continues.
    * Tinting systems at store level are the order of the day.
    * Companies are getting more consumer-centric and a lot of value-added services are being offered, like application support, colour consultancy etc.

The breakup between repainting and new construction is 70:30 on the whole. This ratio changes in the metros and mini metros to 55:45 between repainting and new construction.

Architectural/Decoration sector composition
Enamels-50 per cent
Distemper- 19 per cent
Emulsions- 17 per cent
Exterior Coatings- 12 per cent
Wood Finishes- 2 per cent

What’s in stores?
    * If you are going for the largest paint company in India, Asian Paints, you may choose shades of pastel, melange, accent, glitter, special shades etc from their brands: Ace, Royale, Apex, Duracast, Utsav, Tractor Emulsion, Royal Shyne, Wood finishes etc.
    * Kansai Nerolac offers Vastu and Shaadi colours from Impressions, Beauty and Excel.


Where Asian Paints is regular with Sharad Samman in Durga Puja where they do contests to keep the consumer interest alive, other companies are following suit.

    * Berger Lewis has some interesting plans this season that Subir Bose, MD, reveals, “We have opened Berger Paint Centres, the idea behind which is to offer a great experience to paint consumers. And for the purpose, we are opening franchise centres in Tamil Nadu and Andhra Pradesh. We want to provide a touch feel of paint to consumers through options in terms of colour schemes for their homes. We also have preview software installed in these stores by which we can show the consumers various colour options both for the interior and the exterior of his house. A colour consultant is available in these outlets, who can advice the consumers on the colour schemes. So, these are the kind of benefits we are providing our consumers through these franchise stores”.

He further adds, “We are doing some new launches to appeal to the consumers for festive season. We have already launched our new advertising campaigns of Easy Clean, which is there in the newspapers. We have re launched Luxol Silk which is a premium emulsion and we will be carrying a new ad that will come 10 days later. Some time back, we launched Weather Coat All Guard, again which our competitors didn’t have. So, these are the kind of new initiatives we are taking and they are working well. The colours are pastel, melange and accent”.


Tips for a win-win situation
With so many paint companies, a customer who has plenty of choice will prefer a company that offers him a single point for hassle free home painting solutions:
    * Provide painting job on turnkey basis (Labour+ Material+ Painting+ Accessories).
    * Include in your repertoire painting jobs of decorative painting and designer finishes, have a range of kid’s collection.
    * Have trained executive who help him regarding the estimate and shade selection.
    * Provide the colour consultant on customer’s request.
    * Have preview center (for exterior), which will helps him to choose the colour combination; free of cost.
    * Have trained painters on your panel.
    * Provide shifting & covering of the furniture by your painters.
    * Post painting cleanup would be done by your painters.
    * Provide *service warranty *.
    * Send experienced executive & supervisor to take care of his site on every alternate day.
Overall, offer competitive rates.

Conclusion:
Manufacturers are looking at reducing the cost of manufacturing paints which is higher by 24 per cent than in abroad. A lot is going on in R & D and if there is a breakthrough, the reduced costs may make paints cheaper. Moreover, the demand for paints with functional benefits like low VOC coatings, solar reflect coatings etc., is increasing.


Further, post liberalization, with the shackles of FERA (Foreign Exchange Regulations Act) and MRTP (Monopolies & Restrictive Trade Practices Act), taken off, the industry expanded. New Foreign Equity is a very promising new development.
as also companies are being taken over by foreign companies with some foreign companies have actually  opened shops in India.

 

The good news is that Indian manufacturers hardly face any threat from foreign players. Add to it, many having tied-up with global players in terms of latest technology and market accessibility. Unfortunately, reduction of import duty from 40 per cent to 15.3 per cent over the last eight years hasn't reallycontributed the growth of this sector, but apart from this, other factors do promise an upward trend of 18-20 per cent every year for this industry.





Related Articles

  • Home
    Domestic paint industry
    Indian paint industry is expected to surge from Rs. 40,600 crore to about Rs. 62,000 crore by

Comments

Rating  

Please add your comment:

Not readable? Change text.

Enter the characters as seen on the image (case insensitive)

Notify me of followup comments via e-mail

Subscribe for daily newsletter

Vaibhav Bansal December 16, 2014 at 1:12 pm

Dear Sir, As I saw your advertisement in franchiseindia.com, I would like to have interest to be a part of your Organization. Basically I am from BHOPAL,M.P and I want to Distributorship, Dealership or Franchise of your product on M.P Basis. Awaiting for your favorable reply.My name is Vaibhav Bansal can be reached at Vaibhav.bansal01@gmail.com or + 91-9713025561.

Reply |

Sunil July 05, 2011 at 10:14 am

please contact for a franchise in vizianagaram (ANDHRAPRADESH) mobile:09246337457

Reply |

Aliasgar Nasikwala April 06, 2011 at 2:58 pm

Dear sir, as I saw your advertisement on franchiseindia.com, I am intrested and want to be a part of your organisation and also I want your franchise in Nashik, Maharashtra, please do reply or contact me as soon as possible thanking you. Mobile No: 98603-91001

Reply |

Rajiv Shah December 19, 2010 at 12:33 am

i am intrested to become a superstockist or C&f Agent for your brand. please provide details. contact: member@franchiseindia.com

Reply |

Prabhat Kr. Lohia December 18, 2010 at 1:13 am

hello sir; am interested in this field and would like to have a dealership o distribution of your product in bangalore if anythin possible do response back contact: member@franchiseindia.com

Reply |

Aishwary Bhavnani December 17, 2010 at 2:08 am

i want a c&f for uttar pradesh so get me the details how to start with it.contact no.9936041111 contact: aishwary02@gmail.com contact: member@franchiseindia.com

Reply |

Amit Chhaparia December 06, 2010 at 11:29 am

i want a c&f for uttar pradesh so get me the details how to start with it.contact no.9452358120,9044434112 contact: member@franchiseindia.com

Reply |

Raja Hardwares December 01, 2010 at 7:45 am

Need De alership in Tirupur , Tamilnadu . Pls contact to cell -093632 40451 contact member@franchiseindia.com

Reply |

Pravin November 29, 2010 at 4:24 am

I am very much interested in taking distribution or franchise in Panvel city in the state of maharashtra contact pravin_chaplot@rediffmail.com contact member@franchiseindia.com

Reply |

Ashish November 27, 2010 at 1:09 am

I am looking for distributorship in decorative paints in Pune. Please share some tips. How much is cost of investment for retail paint shop and what is the average turnover for retail shop? Contact member@franchiseindia.com

Reply |

November 25, 2010 at 11:50 pm

Dear Sir, As I saw your advertisement in franchiseindia.com, I would like to have interest to be a part of your Organization. Basically I am from BHOPAL,M.P and I want to Distributorship, Dealership or Franchise of your product on M.P Basis. Awaiting for your favorable reply. With Best Regards Ronak Contact ragsbpl@rediffmail.com contact member@franchiseindia.com

Reply |

N.A.K Choudhary November 24, 2010 at 12:05 am

I am very much interested in taking distribution or franchise in visakhapatnamcity in the state of andhrapradesh contact member@franchiseindia.com

Reply |

Rajesh Samuel November 23, 2010 at 7:40 am

Dear Sir, I am interested to be a part of your organisation. IO am based in Viakhapatnam, Andhra Pradesh. Please contact me at rajeshnsamuel@yahoo.co.in contact member@franchiseindia.com

Reply |

Bhavik Patwa October 29, 2010 at 3:50 am

Dear Sir, As I saw your advertisement in franchiseindia.com, I would like to have interest to be a part of your Organization. Basically I am from Vadodara, Gujarat and I want to Distributorship, Dealership or Franchise of your product on Gujarat Basis. Currently We are doing Wholesale business of all stationery Item. Awaiting for your favorable reply. With Best Regards Bhavik Patwa 09824428291 Contact member@franchiseindia.com

Reply |

Aspari Krishna Prasad October 28, 2010 at 11:41 pm

pl let me have details of the financials and other requirements I am in marketing for the last 25 yrs Contact member@franchiseindia.com

Reply |