Paints await a growth coat
The paints industry is expecting a turnaround in the second half of this fiscal on favourable demand after the growth rate fell to 8 per cent in 2015-16.
- Published 7.09.16
Calcutta, Sept. 6: The paints industry is expecting a turnaround in the second half of this fiscal on favourable demand after the growth rate fell to 8 per cent in 2015-16.
"During 2015-16, overall paints production in the country was estimated to be 4.25 million tonnes, a growth of 5 per cent over the previous year. In value terms, the industry grew about 8 per cent to Rs 43,500 crore. Of this, decorative paints' share was 74 per cent and the rest was industrial," said Jalaj Dani, president of the Indian Paint Association.
"Growth in the industrial paints category depends on the performance of the automotive industry, which consumes around 45 per cent of industrial paints. A slowdown in the sector has adversely impacted the industrial paints business in 2015-16," Dani said at the association's 53rd annual general meeting today.
Falling crude prices had reduced the cost of raw materials allowing the industry to pass on the benefits to consumers in the form of lower prices, Abhijit Roy, vice-president of the Indian Paint Association, said.
"So, in value terms, the growth (in 2015-16) was lower the the double-digit growth seen in the previous few years," Roy, who is also the MD of Berger Paints, said.
The paints and coatings skill council has been initiated to develop the industry's skills. It has developed qualification packs for 20 critical jobs.
Skill development minister Rajiv Pratap Rudy said the industry could consider introducing a common aggregator platform that could lower the gap between demand and supply of consumers and skilled painters.