The Indian paint industry is set to cross ₹1 lakh crore in sales by 2027/28 from the current ₹75,000 crore clocking a compounded annual growth rate of 9-10%, said a senior Nippon Paint India official.
“The performance of the Indian paint industry over the last 18 months has been unpredictable due to supply-chain issues,” said Mahesh Anand, president, Nippon Paint India (Decorative Paint).
“Though there is no volume growth, it has grown in terms of value. However, we expect the industry to turn around in the next four to five months. We are doing well and have stayed above the curve,” he said.
Mr. Mahesh said that increasing number of residential and commercial building constructions, innovation in architectural design and engineering, affordable homes, and the growing trend of urbanisation would drive the growth.
On Tuesday, he announced Nippon Paint’s foray into the ₹12,500 crore construction chemicals market as part of its global vision to expand beyond paint and coatings product range.
“Since 2018, Nippon Paint has made several acquisitions globally. We have been using this period to understand the strength of the products offered by the acquired firms and bring it to India. As a result, we will now be offering products and solutions during construction, post construction and repair and maintenance,” he said.
While liquid-based products will be manufactured in the Chennai, aerosol-based products will be supplied by acquired firms and powder-based products by strategic manufacturing partners.
Initially, these products and services will be offered in Tamil Nadu and Karnataka, which contributes 65% of company’s overall sales and later pan India.
“Right now, we have 3,000 and 2,000 dealers in Tamil Nadu and Karnataka. We will be adding about 2,000 and 1,200 dealers respectively, who are basically selling construction chemicals,” he said.