- Sunday, November 24, 2024
By: Shubham Ghosh
INDIAN multinational paints company Berger Paints has said that though the pandemic-time situation remains ‘complicated’, the paint industry essentially gives a ‘growth potential’ in view of pent-up demand, safe painting solutions, development of rural markets with rise in sales of related non-premium range of products.
The company’s latest annual report also said that there is a gradual shift from the unorganised to organised players led by better consumer awareness in the segment and the per capita paint consumption in India is expected to bolster the paint and coatings industry.
“Increased focus on home improvement, stress on keeping the family members safe from infections indicate an opportunity for the paint and coating industry,” it said.
Besides, the government’s push towards infrastructure growth, combined with factors like differentiated product offerings, waterproofing, wood coatings, construction chemicals and some hygiene products give an edge even in times of difficulties, Berger Paints said.
“The overall thrust on housing for all/affordable housing measures by the government has aided fresh painting demand and will aid repainting demand in future,” it said.
“Though the situation remains complicated, the paint industry essentially affords potential for growth in view of pent up demand, safe painting solutions, development of rural markets with growth in sales of related non-premium range of products like putty and distempers and various new product launches, aided by a gradual shift from unorganized to organized players led by better consumer awareness,” it said.
According to some reports, India’s paint industry is estimated to have a turnover of Rs 50,000 crore ($6.7 billion) but with the threat caused due to the pandemic still looming large with sudden spikes in infection resulting in sporadic lockdowns besides the anxiety and pressure, the scenario still remains uncertain, Berger Paints added.
Entry of new competitors, displacement of migrant workers, hardening of raw material prices including brent crude oil derivatives are among other challenges but so far, Berger Paints has overcome these with “dexterity”, it claimed.
“… beyond the uncertainties, with proper and intricate planning and execution coupled with technological support, human resources, products services and market presence, the Company is well-positioned to take advantage of the additional demand both from domestic and industrial consumers,” Berger Paints said.
The annual report also said that the Indian coating industry is expected to draw the attention of new investors and is well-poised to take advantage of the favourable demand swing while following Covid protocols in the near future.
