The Indian paint industry is expected to touch the Rs 50,000 crore mark in the next three years on the back of rising urbanisation and economic revival, according to the Indian Paint Association (IPA).
Though the paint industry witnessed some slowdown in the last few years due to global economic uncertainties, the industry expects a good growth over the next three years.
It is estimated that the industry would touch around Rs 49,545 crore by FY16. In FY12, the paint industry stood at Rs 26,040 crore, out of which the decorative segment contributed nearly 71 per cent at Rs 18,490 crore, while the remaining Rs 7,550 crore was contributed by the industrial segment. In terms of volume, the industry stood at 3.11 million tonnes, of which decorative segment accounted for nearly 77 per cent share.
The Indian Paint industry has achieved growth of around 15%-16% per cent per year in the past five years, which is 1.5 times India's Gross Domestic Product growth.
The Indian Paint industry is broadly divided into two sectors – organized and unorganized which contribute around 65% and 35% of revenues respectively. It is primarily segmented into two categories – decorative paints and industrial paints which account for 72% and 28% of revenues respectively.