The Rs 40,600-crore Indian paint industry is likely to see a 20 per cent compounded annual growth rate until 2016, according to the Indian Chamber of Commerce, Assocham. The demand from retail consumers, rapid urbanization, and development of rural markets is the reason for this forecast. The industry will reach the level of Rs 62,000 crore in the next two years. India is the second largest consumer of paint in Asia.
The Indian paint industry has seen a gradual shift in the preferences of people from the traditional whitewash to higher quality paints like emulsions and enamel paints with improvement in lifestyle.The rural market grew 20 per cent in 2014.In FY14, per capita consumption of paint increased to around four kg, of which the decorative segment contributed 73 per cent at Rs 29,638 crore. The remaining Rs 10,962 crore was contributed by the industrial segment. The unorganized sector has around 35 per cent of the Indian paint market. In the unorganized segment, there are about 2,500 units.