Paint Industry

The evidence can be found In the cave paintings, The Chinese are considered to be the pioneers of manufacturing paints hosannas of years ago. In modern times paint is made artificially and is used in many different ways. L Paint is a mixture of four elements solvents, binders, pigments and additives. Solvents give the paint a liquid flow while the binder binds It to the surface. Pigments Impart color and opacity to the paint and the additives give it special resistance properties. 2 The Indian paint industry is over 100 years old.

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Its beginning can be traced back to the setting up of a factory by Shalom Paints In Calcutta (now Kola) In 1902. Until World war II, the Industry consisted of small producers ND two foreign companies. After the war, the imports stopped, which led to the setting up of manufacturing facilities by local entrepreneurs, still, the foreign companies continued to dominate the market. Initially British Paint companies such as Godless Walls (now Godless Neuronal), ICC, British Paints (now Berger Paints), Jensen & Nicholson and Blunder & Mite dominated the market. The Indian paint industry historically grew by 1. 5 to 2 times of Indian’s real GAP growth on a year – to – year basis, Now with the achieving 10 per cent economic growth it only augurs well for paint sector. Raw Materials Raw materials which constitute 60 per cent of the total cost for the paint industry is an important factor for maintaining operating margins. Around 600 raw materials are required by the paint industry and all the materials are directly related to crude oil prices. But the most important raw materials is titanium dioxide, which accounts for 25-30 per cent of the costs.

Other important raw materials being used in the industry comprise sector, linseed and soybean oils and turpentine. Products such as paint, timber finishes and others surface coatings are also included in this industry category. The paint industry was divided into two consumer segments. Industrial (such as automotive) and decorative (such as housing). In India the industrial paints segment accounts for 30 per cent of the paint market while the decorative paint segment accounts for 70 per cent of paints sold in India.

The medium range consists of enamels, popular in smaller cities and towns. Distempers are economy products demanded in the suburban and rural market. Nearly 20 per cent of all decorative paints sold in India are distempers dominance. Industrial paints include powder outings, high performance coating and automotive and marine paints. But two thirds of the industrial paints produced in the country are automotive paints while industrial paints are used for protection against corrosion and rust to steel structures on vehicles, white goods and appliances; decorative paints, on the other, are used in protecting valuable assets like buildings.

Indian Paint Market Indian paint market consists of both organized and unrecognized sectors, with 43 per cent coming under the latter. So the majority is under the organized sector. Altogether the total turnover of this industry is estimated to the A. 11,200 Cry. , and the growth rate was put at 16 per cent per annum during 2006-2007. Specifically speaking, the decorative paint market in India, a highly competitive segment with a few major players at national level and a large number of regional players, enjoyed a total turnover of A. 7880 Cry. , during 2006-2007.

Its fragmented retail had an exponential growth in the last ten years with an ever increasing “Dealer Tinting Systems”. It is reported there are 16000 companies in this market. 5 Similarly the industrial coatings market in India had a turnover of about A. 3400 Cry. , during 2006-2007. While 45 per cent of industrial coatings market is accounted for automotive coating segment, another 30 per cent goes for protective and powder coating segment and the remaining is accounted for new emerging segments like road markings, floor coatings, coil coatings and so on.

Facets of Paint Industry in India There are various dimensions of paint industry in India. They are as follows. I. Promotional Bodies it. Quality Parameters. Iii. Price Sensitivity Factors. I. Promotional and Regulatory Bodies Allied Products Exports Promotion Council) a non-profit making organization, was set up in March 1958 by the Ministry of Commerce and Industry, Government of India over the years has been playing an important role to promote exports of paints from the country.

Established in 1962, the Indian Paint Association is the apex body of the Indian paint industry, which represents both the organized sector and the small scale sector in the paint industry. It is a voluntary non-political and nonprofit organization which promotes the interest of the paint industry and the society. The PIP is a unique forum in which even the very small scale manufacturers are members beside all the major paint producers in India. The representative character of the association is amply demonstrated by the fact that more than 80 per cent of the total paint production in the country is accounted for by members of PIP.