LONDON – Industry research firm IRL announced the publication of a new edition of its Profile of the Indian Paint Industry. India is the seventh-largest country and the largest democracy in the world. It is one of the fastest-growing economies in the world, second only to China. India is also the second-largest paint market in Asia with an annual demand of over two million tonnes, again second only to China.

Demand for coatings in India has been estimated at 2,205,000 tonnes in 2011. Decorative coatings account for nearly 78 percent of the market in terms of volume and about 70 percent in value, while automotive coatings, both OEM and refinishes, dominate the industrial segment, followed by high-performance protective coatings and powder coatings.

Future market growth is expected to be in the order of 11 percent per annum overall, with individual segments displaying a broader range of growth rates across the two main segments. Demand for coatings is expected to reach 3,723,500 tonnes in 2016, mainly due to impressive growth in the construction, automotive and electronic appliance (white goods) industries.

The Indian paint industry has been historically polarized into the large organized and the smaller unorganized sectors. The organized sector accounts for approximately 65 percent of the market; with more global companies entering the Indian market, it is not surprising that it is gaining increasing share at the expense of the unorganized players.

This report covers India’s fast-growing market for coating, segmenting the market into nine mainstream coatings sectors and providing current market data for 2011 plus market forecasts to 2016.

The Indian coatings industry has been growing at an average 15 percent per annum over the last decade. Growth has been consistent with the Indian GDP growth rate, and in some years the industry has grown at a rate of 1.5 to 2 times higher than that of GDP growth. Construction remains the key growth sector and is driving demand for decorative and protective coatings. The sector accounts for nearly 45 percent of the total national investment in infrastructure, and the trend is expected to continue in the future.

Growth in the Indian car market is strong, at about 10-12 percent per annum, which is creating good demand for OEM coatings and vehicle refinishes in the long term. The refinish segment is enjoying growth in each of the premium, medium and economy sub-segments as a result of rising car ownership across all classes. However, as car ownership is likely to increase at the low end in the future, the greatest growth is to be expected in the economy area.

Many paint companies are expanding their operations in India but the rapid growth of the paint industry, with billions of rupees being invested in enhancing capacities, is causing concern among environmentalists.

A Profile of the Indian Paint Industryis now available from IRL at the price of EUR 3,250. It includes market data for 2011 and forecasts to 2016 for each industry segment covered in the report, plus a SWOT analysis of the Indian coatings industry overall and profiles of the key players.

Sections of the report, priced individually, are available to purchase online at