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| Riding on revival signs, IPA eyes modest growth |
| BS Reporter / Kolkata Aug 11, 2009, 00:55 IST |
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Indian Paint Association (IPA), representing the paint makers in the country, expects a modest 10-12% industry growth in 2009-10 on year on the back of initial signs of revival in the user industries and softening of crude prices. The industry recorded a meagre 8-10 per cent growth last fiscal, down by 5-6 per cent on account of recession causing slump in demand and rising crude oil price which touched an all-time high.
“Last year was exceptional. We recorded a growth of only 8-10 per cent growth as against 14 per cent recorded in 2007-08, one of the lowest in recent history due to spiraling crude oil prices which constitutes close to 50% of our inputs. The average compounded annual growth rate (CAGR) over the last 10 years had been close to 15 per cent. With the huge infrastructural growth projected, we hope to post better growth this year. There has been a slight revival in demand in some sectors,” said Virendra Kumar Singhal, president, IPA on the sidelines of 46th Annual General Meeting in Kolkata. Singhal said that signs of revival in real estates as well as automobiles as indicators are expected which would help pick up demand for paints. IPA represents close to 80 per cent the paint makers in the country.
By the end 2012-13 when IPA members would be voluntarily phasing out the use of lead in its pigments.“Use of organic formulations in place of inorganic will definitely have a cost impact. Excluding lead might raise input cost 3-4 times per litre in select shades. Overall, there might be a 3-4 per cent rise in input cost,” pointed out Harnish D Juthani, vice president, IPA.
IPA had voluntarily decided to bring down use of lead to 0.1 per cent by weight in all varieties of archictectural paints produced after December2012 from an average 10% now in select shaded. “This is a voluntary regulation keeping environmental hazards in mind. We have submitted a proposal to the industry ministry two months back and hope to phase this out. IPA members would have to shift from inorganic pigments to costly organic pigments," said Juthnani.
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