Paint Industry in India
Solvents: are volatile organic compounds (VOC) used to
dissolve, suspend or change the physical properties of other materials. They are
generally used to bring down the viscosity of paints to the desired level which
also reduces the cost of paint formulation.
Solvents constitute 70% to 75% of the paint liquid and
ultimately escape into the atmosphere when the fluid dries. Solvents such as
ethylene glycol and alcohols are finding wider use as co-solvents in new water
borne formulations.
Binders : are generally oils, resins and plasticisers that give
paint its protective property. Most resin manufacturers make alkyds, polyesters,
emulsion polymers, epoxy resins, amino resins etc.
Additives :
are added in small proportions to the
paint to improve its performance characteristics in various ways. Skinning inhibitors, fungicides, wetting agents, driers etc are included in this
actegory.
This is a working capital intensive industry. Due to wide range
of shades and varying pack sizes, the finished products tend to have a large
inventory. Production of paints require 300 different (mostly petroleum based)
raw material costs normally constitutes about 65% of the sales. The paint
industry derives most of its revenue in the second half of the financial as this
half coincide with the festival season in India. Also sales of automobiles in
India is more in the second half in comparison to the first half.
Rural market a new segment for the industry
Rural market has emerged as the new segment for the players in
the decorative market and most of the players have identified this segment as a
thrust area and are launching new economy brands to cater to the need of this
segment.
Goodlass Nerolac has launched its synthetic distemper
"Goody Synthetic" paint to add to its range of wall finishes. The
product has been packaged in a "festive look" polythene bag containing
one kg of synthetic distemper. The product is available across the country and
has a surface drying time of 30 minutes. Company officials claim that a one kg
bag has a coverage of 160 square feet per coat. The new product falls in
category-III paints and has an emulsion base which acts as a binder. The company
perceives Goody Synthetic Distemper as a mass-base product. Hence it is being
supported by below-the-line-promotion based on retailer margins and driven by
price.
Comparative position of major players in the
decorative segment of the paint industry
| Company |
Premium
Brand |
Rank |
Intermediate
Brand |
Rank |
Economy
Brand |
Rank |
| Asian
Paints |
Royale |
2 |
Apcolyite
& Tractor |
1 |
Utsav
& Tractor |
1 |
| Goodlass
Nerolac |
Allscape |
4 |
Nerolac
& Nerocem |
2 |
Goody
Synthetic |
2 |
| Berger
Paints |
Luxol |
3 |
Rangoli |
3 |
Butterfly |
3 |
| ICI
India |
Dulex |
1 |
|
|
Maxilite |
3 |
|
