Paints and coatings industry is expected to touch US$ 12.22 billion (Rs. 1 lakh crore) in five years: Akzo Nobel India

According to the leading paint manufacturer Akzo Nobel India, India's paints and coatings industry is expected to reach US$ 12.22 billion (Rs. 1 lakh crore) in the next five years. The company stated in its most recent annual report that the paints and coatings industry is currently valued at about US$ 7.57 billion (Rs. 62,000 crore).

 As per the company, the paints and coatings industry include a wide range of products, with the architectural sector dominating the industry with a volume share of 69% and the industrial sector with a share of 31%. The company claimed that during the fiscal year 2022-23, the prices of raw materials decreased from their prior highs, which was a favourable development for the paints and coatings industry.

 The raw materials make up between 55-60% of all input costs, although price changes for crude and other essential components have improved industry margins, Akzo Nobel stated. Additionally, it stated that the economy's growth, which is driven by variables like income levels and infrastructure development, is closely connected to the paints and coatings industry.

 Despite potential risks from fluctuating crude prices, macroeconomic climate, and inflationary pressures, the industry, has a promising outlook. According to the company, India is expected to grow at a medium pace of 6-7%.

According to Akzo Nobel, the company's major areas of concentration will be margin management by maintaining current levels and increasing them, modifying the cost base to reflect market realities, and lowering working capital to enhance cash flows.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.