The two Cabinet committees set up by the new government at the Centre to give impetus to employment and growth are expected to boost the Indian paint industry, said Abhijit Roy, the outgoing chairman of the Indian Paint Association.
“The outlook is good and margins too may improve this year on account of softer raw material prices,” Mr. Roy said at a press meet.
“While employment growth will boost demand, economic growth has a direct impact on the paint industry,” he added.
Value, volume growth
During 2018-19, the paint industry grew 15% by value and 12% by volume. However, margins came under pressure due to high oil prices and the rupee volatility.
Mr. Roy said that while there was scope for optimism in the decorative and protective paints segment, there was some concern about the automotive paint sector in the first half of the financial year. “We are hoping [for] second half recovery for the automobile [paint] industry,” he said.
The organised sector paint industry accounts for 70% of the ₹50,000-crore industry, while the rest is accounted for by the unorganised segment. Earlier at a public session, Dipankar Chakrabarti, executive director — technology optimisation lead, PwC, said that the industry needed to understand the importance of adopting a digital strategy beyond hosting a website and an app.
‘62% rise in profitability’
“If you are innovative with your process, production and manpower, then it is possible to enhance your profitability by around 62%,” Mr. Chakrabarti said.
Commander Manoj Kr Gupta (retired) of Garden Reach Shipbuilders Ltd. said that there was a sustained demand for paints for warships as the Navy was expanding its fleet.
There was demand for anti-corrosive paints as also for painting new import substitute items.
