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Frost & Sullivan Publishes New Analysis on the Indian Building Paints Market - The Indian building paints market has hit a purple patch with the country's middle class emerging as a lucrative end-user segment due to their rising product awareness and disposable income
Frost & Sullivan Publishes New Analysis on the Indian Building Paints Market

 

PRZOOM - /newswire/ - Mumbai, India, 2009/12/22 - The Indian building paints market has hit a purple patch with the country's middle class emerging as a lucrative end-user segment due to their rising product awareness and disposable income.

   
 
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The growth in the construction segment, which mirrors the mounting affluence of the middle class, has further fuelled the demand for building paints.

New analysis from Frost & Sullivan (chemicals.frost.com), The Indian Building Paints Market, finds that the market earned revenues of $1.74 billion in 2008 and estimates this to reach $3.39 billion in 2015.

If you are interested in more information about this study, send an email to Anish Charles and Nimisha Iyer, Corporate Communications, at anishc[.]frost.com/ niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

The market's main revenue stream is the repainting segment, and the growing prosperity of the public has augmented business from this segment. The Indian Government's plan to declare huge economic packages for investments in housing schemes is also expected to hike the demand for both interior and exterior paints for new projects as well as repainting requirements.

The market is witnessing a slow shift from low-quality economy paints to high-quality premium, environment-friendly paints due to consumers' willingness to spend on aesthetically appealing premium products.

"Earlier, sales were seasonal, hitting a high during festivities, but the current market is maintaining an average high sale throughout the year," says Frost & Sullivan Consultant Rakhee Iyer. "Additionally, the growing brand awareness and novel marketing strategies are boosting the use of paints."

While the local participants are finding the going good currently, they should be wary about the escalating presence of multinationals. As the market becomes increasingly populated, the intense competition, rising raw material costs, and price variations are likely to restrain the market. The key raw materials, which account for nearly 70 percent of the cost of the paints, are experiencing extreme price fluctuations, which have rippled into the cost of paints.

With more than 2,000 participants in the market, the paint companies find it difficult to maintain their price margins since consumers have a wide choice of paints to select. On the other hand, the entry of multinationals has greatly enhanced the quality of paints in the country. Moreover, it has compelled participants to invest in R&D to develop technologies that cater to the diverse demands of Indian consumers.

One of the main challenges of catering to this market is reaching out across the country. To ensure complete reach, participants have to establish a complex, yet efficient distribution structure.

"A strong distribution network is critical to success in this market since the products are made available to the consumers only through distributors," notes Iyer.

Participants also have to focus on product development to offer value-added products and features for their discerning customers that are demanding newer and better products.

The Indian Building Paints Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: bioplastics in India, strategic analysis of the polyolefins demand in the GCC, and strategic assessment of the Indian construction chemicals market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

The Indian Building Paints Market / P31A

Contact:
Tanu Chopra
Corporate Communications – Middle East
P: +91 22 4001 3437
F: +91 22 2832 4713
E: tanuc[.]frost.com

 
 
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Frost & Sullivan Publishes New Analysis on the Indian Building Paints Market

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Frost & Sullivan |
Contact: Anish Charles / Nimisha Iyer 
+91.22.4001 3419 / +91.98200 50519 anishc[.]frost.com / niyer[.]frost.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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