Customers Are Increasingly Becoming More Aware Of Eco-Friendly Products.
Mahesh Anand, President, Nippon Paint India (Decorative Division)
How is the decorative paints market picking up in India and what are the opportunities do you look forward for decorative paints?
The decorative paints sector in India has been on a consistent growth trajectory. As we approach the end of FY23, it is projected that the Indian paint industry will attain an approximate value of Rs 62,000 crore. This upward trajectory can be attributed to various pivotal factors, including increasing income levels, changing lifestyle preferences, especially among the younger generations, and the surging demand for repainting, which currently makes up a substantial 60% of the market. These elements collectively contribute to the optimistic trend.
Fundamentally, the decorative paints industry in India is undergoing a significant upswing, encouraging prospects for both domestic and global enterprises. Concurrently, there are additional crucial factors bolstering the market’s prospects. Elements like swift urbanisation and the substantial demand arising from residential and commercial projects are intensifying the demand for paints and related goods throughout the country. In terms of magnitude, the current evaluation of the Indian paint sector stands at approximately 50,000 to 55,000 crores, with decorative paints constituting a substantial portion of roughly 70-75 per cent.
Which are the key demand drivers and the technology trends emerging in decorative paints in India?
When we talk specifically about decorative division, it’s purely consumption-driven market. Approximately 15 years ago, the standard repainting cycle took place once every ten years, but today, it has shortened to about two to four years. This shift can be ascribed to an increased awareness of the importance of repainting and a heightened emphasis on enhancing aesthetics. This encompasses individuals redecorating their walls for festivals, special events, and gatherings. Additionally, Nippon has leveraged research and development to introduce innovative products such as cool roof paint, anti-bacterial paint, and eco-friendly paint, among others, to cater to various requirements.
The emphasis on health and hygiene, especially in the aftermath of the Covid-19 pandemic, has become a paramount concern. Consequently, there is a significant demand for eco-friendly and low VOC paints in India. These paints positively impact indoor air quality and do not emit harmful fumes. Additionally, anti-microbial paints have demonstrated their effectiveness in reducing bacteria, fungi, and other microorganisms on painted surfaces.
In recent times, consumer preferences have noticeably shifted towards heat-reflective and cool roof coatings. These coatings are engineered to reflect a substantial amount of heat, effectively regulating interior room temperatures. Consequently, this leads to reduced energy consumption for air conditioning purposes.
What are your latest products and solutions in decorative paints?
We have recently introduced a ground-breaking innovation in interior paints known as Nippon Air Care VG. This paint has been specifically engineered to enhance its antiviral properties, providing an additional layer of protection against infectious diseases by inhibiting the spread of viruses on various surfaces.
Our Nippon Paint Atom 2-in-1 multi-purpose emulsion is a versatile and durable paint suitable for a wide range of applications, both indoors and outdoors. Developed through extensive research and feedback from our decorating partners, this high-performance paint is formulated with acrylic modified emulsion. It is suitable for use on both interior and exterior walls, and it is environmentally friendly, producing no harmful pollutants. Additionally, it facilitates easy surface cleaning and has low levels of volatile organic compounds.
How do you look at the market in the coming years for decorative paints?
The Indian paint industry is projected to surpass the Rs one lakh crore mark by the fiscal year 2027-28. This growth is poised to trigger the expansion of current participants, the entry of new players, heightened investments, surging demand, and an overall broadening of the market. Factors propelling this growth include the rising number of residential and commercial construction projects, advancements in architectural design and engineering, the development of affordable housing, and the ongoing trend of urbanisation.
Customers are increasingly becoming more aware of eco-friendly products, driving the demand for sustainable products. Simultaneously, with the increasing colour trends, the re-painting period will reduce to lesser than two years from the current 2 to 4 years as people seek to quickly adapt to the moods in their living spaces. The use of wall paintings as artistic expressions has become a popular trend, thereby enhancing the elegance of interior decor. These shifts are set foster drastic consumer-driven innovations in the industry.
