With double digit CAGR, country’s paint industry to reach Rs 1 lakh crore size, ET RealEstate

June 24, 2023

PANAJI: India’s paints and coatings industry is expected to grow to a Rs 1 lakh crore market in the next five years from the current Rs 62,000 crore, said the Indian Paint Association (IPA). IPA functionaries said that the industry has seen a consistent double-digit compound annual growth rate (CAGR).

Goa is one of the fastest growing markets within India because of rapid infrastructure growth, which in turn fuels the expansion of the paints and coatings market.

“There is a strong positive correlation between growth of the industry and GDP growth of the country given the sector’s dependence on overall economic activity, including income levels, industrial production, infrastructure and construction spending,” said Ashok Kumar Gupta, the IPA president and managing director of Shalimar Paints Limited.

Gupta said that India’s economic fundamentals remain strong. He was speaking at the three day conference convened to deliberate on future market trends and strategies for sustainable growth.

The country’s paint industry has historically surpassed India’s GDP growth. Roughly 50% of India’s paint industry is held by a handful of large corporate companies, and the balance is shared by about 2500 small and medium-scale companies having regional footprints.

Priya Bhumkar, the managing director of Soujanya Color, said that Goa is witnessing an unprecedented construction boom, which is driving the demand for paints. “Tourism is the keystone of Goa’s vibrant economy. However, the presence of robust pharmaceutical, mining, packaging and MSME enterprises has ensured that the economy of Goa is driven by multi-sectoral development. Indian paint and coating industry can play an important role in the success of Goa’s unique progress story,” she said.

  • Published On Jan 21, 2023 at 07:00 PM IST

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