We are planning to expand our operations and reach in eastern and western regions in future

- Vijay Kumar Bansal

Managing Director, Superlac Paints

How is the paint industry in general performing? What is the demand and supply scenario? 

The Indian paint industry has been witnessing a gradual shift in the preferences of people from the traditional whitewash to high quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. Besides, it is creating a strong competitive market, where players are utilising different strategies to tap the growing demand in the market for a larger share. Moreover, rise in disposable income of the average middle class coupled with increasing investment on education, urbanization, development of the rural market, and various launches of many innovative products like friendly, odor free, and dust & water resistant paints, are major drivers that are propelling the growth of the paint market in India.

In which segment does Superlac Paints specialise and what is your product line?

We are into high quality architectural, wood and industrial paints and coatings. Our major product line includes all kind of emulsions, enamel paints, all kind of base coats and primers, universal stainers and colorants, putties, cement coats, water proofing, and bituminous, aluminium coatings and wood coatings.

What is your current market reach and what are your expansion plans?

We are catering to one of the biggest markets of India, the Northern part. Further, we are planning to expand our operations and reach in Eastern part in first phase and later Western region in second phase for further future expansion.

In your opinion what is the key driver that is driving the demand in the paint industry and by what rate it is growing on an annual basis?

The domestic paint industry is estimated to be a Rs 500 billion industry with the decorative paint category constituting almost 75% of the market. The decorative paint market includes multiple categories depending on the nature of the surface like exterior wall paints, interior wall paints, wood finishes, enamels as well as ancillary products like primers, putties, etc. The industry is expected to grow at a CAGR of around 10% during 2021-22 to 2024-25 in value terms. And the key factors driving the growth of the demand in paint industry will be increase in growing demand from the construction industry, coupled with rising infrastructure activities. A rise in disposable income of the average middle class, urbanisation, growing rural market, shortening of repainting cycle, and increase in sale of premium-end products are the major drivers that are pushing the growth of the organised paint industry.

In terms of innovation, what are the new formulations that are being introduced and how is technology playing its role?

Colour dispensing machines as a technology transformed the Indian paint industry. They provided economies of scale and reduced inventory levels, improving profitability.

There are many unorganised players in the paint and coatings industry. How is this overall affecting the paint market?  

Small unorganised paint manufacturers primarily catering to the lower end of the price points still maintain a sizeable 30-35% share in the overall paint industry. The paints sector is raw material intensive, with over 300 raw materials (50% crude-based derivatives) involved in the manufacturing process. Since most of the raw materials are petroleum-based, the industry benefits from softening crude prices.

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