Published on January 12, 2015

According to a research reports, in India the industrial paint market is growing at a high rate backed by a boost in demand in automobile sector. The sector is anticipated to grow at the rate CAGR by 13% in since 2014-2018. However the growth in the Indian paint market is driven by rapid urbanization, emergence of the middle class, increase in disposable incomes, growing infrastructure, increase in the tendency to spend extravagantly and growing young population inclined towards leading a lavish lifestyle.

Lower input costs along with improving demand scenario will constrain swell for the paint companies. Softening crude oil prices has brought joyfulness to paint companies' prospects. Falling crude prices is giving significant margin boost to paint market players. Traction in decorative segment and reviving industrial segment growth could benefit Asian Paints, Berger Paints and Kansai Nerolac in near term.

According to industry analysts, shift towards premium products, higher frequency of repainting cycle and higher purchasing power of the end user will drive growth for the paints companies. They said that strong distribution network and brand equity of the players is also a key positive, while an economic recovery will only boost demand for both, industrial as well as decorative paints in coming future.

Again shares of paint makers turn down on profit booking after recent steep rally triggered by sharp fall in crude oil prices. Moreover, major paint manufacturers Berger Paints and Shalimar Paints have drop down by 2.98% and 5.44%, whereas Asian Paints and Kansai Nerolac Paints were noted down by 3.18% and 1.36%, respectively. At the same time Akzo Nobel India another major paint manufacturer