Swot Analysis Of Paint Industry

854 Words2 Pages

INDUSTRY ANALYSIS

Porter’sFiveForces:

Indian Paint Industry
Market
The market size of Indian paint industry is estimated at about INR 29100 crore.
The industry comprised of both organized and unorganized players with the former controlling about 65% of the market and the latter about 35%
The Indian paint industry is largely divided into two segments. Decorative paints
 71% market share
 Classified further into water based paints, growing at a higher rate, and solvent paints
 Demand comes from both construction of new building as well as refurbishment of old building otherwise repainting
Thus it correlates with the growth in construction sector, disposable and per capita income Industrial Paints
 29% market share
 Comprises of automotive, general industrial, protective coatings, coil …show more content…

Paint Industry being one of raw material intensive and the raw material cost accounts for about 50-60% of the total cost of production and thus the profit of the industry players swings with the material cost.
Paints industry in India being highly competitive, players don't have the luxury to enjoy high gross margins for long. Price of end products would fall once the high-cost inventory gets exhausted and the industry gradually gets the benefit of lower raw material prices. Leading manufacturer Asian Paints has made a beginning with a price cut of 2% effective 01 March 2015.
Growth
The growth rate is estimated to be more than 2 times of GDP for decorative products. Given the thumb rule of 2 times of GDP growth the Indian paint industry is expected to grow between 8.5-9.4% for the fiscal 2013-14.
This reasons for high growth can be attributed to the growth in volume on account of increased market penetration efforts of industry players.

More about Swot Analysis Of Paint Industry

Open Document