Paint Industry IndiaPaint Industry – India
September 2011
Executive Summary
Market
Paint industry in India is expected to reach INR X1 in 20‐‐
The segment has been in a position to sustain downturns despite the global economic recession
This sector has continuously recorded a growth of X2 times the G1 growth rate of India
Analysis 1 speaks of conducive conditions available for further growth of the industry
Drivers–Growth in real estate construction–Growth in automotive industry
Challenges– Increase in input prices
St i t i t l l tiDrivers & Challenges
–Growth in automotive industry–Growth in industrial sector– Increase in disposable income–Low penetration– Increased Government expenditure
i f t t
–Stringent environmental regulations
on infrastructure
Color experimentation
Customer participation with value added servicesTrends
New trademarks and patents flood the sector
Increasing demand for emulsions
CompetitionMajor Players
Player 1 Player 2 Player 3
Environment friendly paint Small size packs
2PAINT INDUSTRY IN INDIA 2011. PPT
Player 4 Player 5 Player 6
•Market Overview
•Import‐Export
•Drivers & Challenges•Drivers & Challenges
•Initiatives
•Trends
•Competition
•Strategic Recommendations
3PAINT INDUSTRY IN INDIA 2011. PPT
Indian paints industry has been successful in registering double digit growth figures
•Despite global economic recession, this sector has been able to overcome downturns due to high
Paints Industry – Overview Market Size and Growth
1 000INR bn
Qdemand 1 and decreasing dependence on demand 2
• Indian paints industry is estimated to touch INR X1 by 20‐‐ This sector has continuously recorded a growth of Y1 200
400600800
1,000
P
y%
times the GDP growth rate of India
• India ranks below only to country1 and country2 in terms of production of paints, while it ranked 2nd
only to country3 in terms of growth rate of d
Revenue Breakdown (2010)
0200
20--20--
production
•Demand for paints is price elastic and is connected with X3 and X4 growth
• Low Y2 consumption, in comparison to other
t%s%
r%
Type 2Type 1
Type 4Type 3
developing nations, creates strong opportunity for players in the market
p%r%
q%
Type 5Type 4
4PAINT INDUSTRY IN INDIA 2011. PPT
Source:
Drivers & Challenges – Summary
Drivers
Challenges
Growth in real estate construction
Growth in automotive industryChallenges
Increase in input prices
Stringent environmental regulations
Growth in industrial sector
Increase in disposable income Stringent environmental regulations
Low penetration
Increased Government expenditure on infrastructure
5PAINT INDUSTRY IN INDIA 2011. PPT
Trends – Summary
Colour Experimentation
Customer participation with value added services
`
Environment friendly paints
Key Trends
New trademarks and patents flood the sector
Increasing demand for emulsions
6PENSION FUND MARKET IN INDIA 2011.PPT
Small size packs
Players in the Market (1/9)
Company Snapshot: Company 1Corporate Information Financial Performance
RevenueH d t Pl 1 C t 1
500
1,000
1,500
200400600
INR bnINR bn
R SQ
P
Profit / LossRevenueHeadquarters Place 1, Country 1
Founded 19‐‐
Products Product 1, Product 2
Business Highlights
0
500
-2000
20--20-- 20--20--
Capacity C1 (20‐‐)
Key People Person1 – Position1
•Has operations in more than ‐‐ countries with an employee strength of ‐‐ people around the world
• It manufactures and markets paint products under X1 brand name in India
• Has registered a Y1% volume CAGR during the period 20
Business Highlights
•Has registered a Y1% volume CAGR during the period 20‐‐‐‐‐
•Has a network of ‐‐ dealers and has converted more than ‐‐ outlets into centre1 that provides service1 and service2
with a vision to make painting an experience with fun
Centre1 have reported an average increase of Y2 per cent in footfalls as compared to the other dealerships
7PAINT INDUSTRY IN INDIA 2011. PPT
p g p p p
• Launched product3, an exterior paint product in Feb 20‐‐Source:
Thank you for the attentionThe Paint Industry‐ India report is part of Netscribes’ Consumer Goods Series. For more detailed information or customized research requirements please contact:
l
Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quick
Gagan Uppal Phone: +91 22 4098 7530E‐Mail: [email protected]
Gaurav KumarPhone: +91 33 4064 6214E‐Mail: [email protected]
Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on
About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.
Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on India
8PAINT INDUSTRY IN INDIA 2011. PPT
Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction.