With the market slowly reviving, we expect growth in the second half of 2023
The government's decision to reduce taxes on raw materials used in the manufacture of paints may result in a decrease in production costs making paint products more affordable to end users. The allocation of funds for infrastructure development in the budget would increase demand for paints and coatings used in construction projects. Furthermore, if the government announces measures to boost the housing sector, the paint industry will benefit indirectly because increased construction activity leads to increased demand for paint and coating products.
MAHESH ANANDM
President, Nippon Paint (India), Decorative Division
How far will the Budget help in pushing the further growth of your business segment?
The government's decision to reduce taxes on raw materials used in the manufacture of paints may result in a decrease in production costs making paint products more affordable to end users. The allocation of funds for infrastructure development in the budget would increase demand for paints and coatings used in construction projects. Furthermore, if the government announces measures to boost the housing sector, the paint industry will benefit indirectly because increased construction activity leads to increased demand for paint and coating products.
What kind of push in project execution are you expecting this year considering the general elections in the following year?
The exact type of push a paint company may experience in project execution during elections is difficult to predict because it can vary depending on a variety of factors such as the political environment, government policies, and the nature of the paint company's business.
During election seasons, however, there may be an increased government focus on infrastructure development and housing, which may result in an increase in demand for paint products used in construction projects. As a result, paint companies that supply paints and coatings for construction projects may face a push in project execution. Furthermore, political parties may engage in advertising and marketing campaigns during election campaigns that can raise awareness of specific industries and products, including paint products. This increased awareness may result in increased demand for paint products, causing paint companies to execute projects more efficiently.
Overall, while it is difficult to predict the exact type of push a paint company will receive during elections, there may be opportunities for paint companies to benefit from government investments in infrastructure, increased demand for paint products, and government incentives for specific industries.
How are you planning your investment & expansion plans in the year 2023-24?
With Beyond Paint category, we are diversifying and focusing on construction chemicals market. As a part of the expansion plan, we will offer products and solutions under the categories - dry mix, repair and maintenance, construction chemicals, and waterproofing. We aim to increase the distribution touch points by over 50%, invest on R&D, and conduct training for the stakeholders.
The products will focus on three key market segments:
- During construction: concrete admixtures and membranes
- Post-construction (new buildings): concrete repair, waterproofing, hybrid sealants, and adhesives
- Repair & Maintenance: Protective coating, sealants, and waterproofing.
What kind of growth are you expecting in the year 2023-24? What is your outlook on 2023-24?
While the last quarter of the calendar year 2022 has seen a market slowdown, from the beginning of 2023 - we see a visible difference in the growth trajectory. With the market slowly reviving, we expect growth in the second half of 2023. Having entered a new category this year, we see an action-packed year ahead.
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