Published on August 23, 2016

Volatility of the Indian currency and international oil prices and worries about a normal monsoon continue to be major challenges facing the paint industry.

As per report, paints have been one of the few consumer categories that have shown flexibility in the current environment of slowdown in demand. Recent forecast of monsoon, expectation of increase in government expenditure and possible implementation of GST seemed to have further pushed the paint consumers.

Market report said that Asian Paints would expand the manufacturing capacity of its two units based at Sriperumbudur in Tamil Nadu and Ankaleshwar in Gujarat.

The paints industry grows at 1.5 times the GDP growth and the expectation of further improvement in the GDP growth predict well for the country's largest decorative paints company.

Currently the market size of the paint industry in India is around Rs 350 billion. Industry players anticipate 10-12% rise in sales in this fiscal which will boost the industry. Some market players anticipate that the decorative paints segment is approaching higher intensification. The incentives given by the Indian government to the housing sector have enormously benefited the housing sector. This will benefit key players in the long term.