Indian paint industry to touch Rs 62,000 cr by 2016: Assocham

The Indian paint industry is estimated to touch Rs 62,000 crore in the next two years, largely helped by the increasing demand across the country, especially in the hinterlands, a report said.
"Indian paint industry is likely to surge from the current level of about Rs 40,600 crore to about Rs 62,000 crore by 2016, witnessing a double-digit compound annual growth rate (CAGR) of about 20 per cent," according to a study by the industry body Assocham.
Rise in disposable income and education, increasing urbanisation, development of the rural market and various launches of many innovative products have fuelled the paint industry's growth, the report noted.

It observed that there has been an increase in sales outside metros, as rural India's incremental consumption expenditure is witnessing a handsome growth.
"The rural sector has a major share of the decorative paints segment. Thus, any benefit to the rural sector for improving the dispensable income is directly co-related to the growth of the paint industry. Besides, decorative paints are marketing savvy products backed by large advertisement campaigns and dealership networks," it said.
In FY14, the paint industry stood at Rs 40,600 crore with per capita consumption increasing to over 4 kgs, out of which the decorative segment contributed nearly 73 per cent at Rs 29,638 crore, while the remaining Rs 10,962 crore was contributed by the industrial segment.

The major boost to the growth in Indian paint market has been provided by the decorative paint segment, which is anticipated to grow more than 18 per cent during the period 2014-15, it said.
The unorganised sector controls around 35 per cent of the paint market, with the organised sector accounting for the balance. In the unorganised segment, there are about 2,500 units having small and medium-sized paint manufacturing plants, it added.