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Indian Paint Makers Expect Festive Growth Despite Price Hikes
India’s major paint companies expect people and businesses to buy more paint during the festive season.
They see demand from homes, construction projects, infrastructure and cars.
Asian Paints expects its sales volume to grow by 8-10% in FY27.
Berger Paints and JSW Dulux expect double-digit growth.
The companies have raised prices because some of their materials come from petroleum and have become more expensive.
Many new companies have entered the paint market, making competition tougher.
Paint makers say the economy segment is especially competitive because of discounts for contractors and dealers.
However, higher crude prices, supply problems and geopolitical tensions could make business more difficult.
Leading paint manufacturers expect double-digit festive-season growth, supported by housing, infrastructure and automotive demand.
Asian Paints expects 8-10% volume growth for FY27, while Berger Paints and JSW Dulux project double-digit growth.
Companies are raising prices to offset petroleum-linked raw-material costs and other input pressures.
Competition remains intense across economy, premium and luxury paint segments, especially in economy products.
Crude prices, geopolitical tensions, supply disruptions, rupee depreciation and import costs remain key risks.
- Who
- Asian Paints, Berger Paints, Kansai Nerolac Paints and JSW Dulux, along with their senior executives.
- What
- Paint manufacturers are forecasting continued festive-season growth while raising prices and facing intense competition.
- Where
- India’s paint market.
- When
- The outlook follows the June quarter of FY27 and covers the upcoming festive season and the rest of FY27.
- Why
- Demand from housing, infrastructure, construction and automotive sectors is supporting growth, while price increases are intended to offset higher input costs.
Growth Optimism
Cost And Competition Risks
Festive demand
Growth Optimism
Asian Paints, Berger Paints and JSW Dulux expect demand to remain healthy, with festive sales and sector demand supporting growth.
Cost And Competition Risks
Kansai Nerolac and other executives warn that crude-linked costs, geopolitical conflicts and supply-chain disruptions could affect the outlook.
Pricing power
Growth Optimism
Price increases taken in the first and second quarters are expected to support revenue growth in coming months.
Cost And Competition Risks
Higher prices are being introduced to offset rising costs while companies face intense rivalry and discounting across product segments.
Competitive intensity
Growth Optimism
Companies continue targeting growth in both volume and value despite the crowded market.
Cost And Competition Risks
Competition has intensified across economy, premium and luxury paints, with the economy segment particularly pressured by discounts for contractors and dealers.
Key facts
- Asian Paints FY27 volume outlook
- 8-10% growth
- Berger Paints Q2 volume outlook
- Approximately 7.5-8%, with a price increase of about 7.5-8.59%
- Asian Paints June-quarter profit
- Rs 1,559.45 crore, up 39.6%
- Asian Paints June-quarter revenue
- Rs 10,541.94 crore, up 18%
- Kansai Nerolac first-quarter price increase
- Approximately 5%
- Kansai Nerolac expected additional Q2 increases
- About 3% for decorative paints and 3-5% for industrial paints
- New market entrants
- Pidilite’s Haisha Paints, Grasim’s Birla Opus and JSW Paints have entered the market in recent years
Quotes
Rajiv Rajgopal
Joint Managing Director and CEO of JSW Dulux
“We are entering a festive quarter where the month of September becomes good enough from some festive sales. As we look at even quarter three, quarter four, overall, we have given our direction that we should stay in the volume region of about 8-10 per cent,”
telegraphindia.com
“The volume growth will be somewhere around similar levels as quarter one, slightly below maybe, so we were at 8.5 per cent, maybe it will be 7.5 to 8 per cent, approximately, and a price increase which is there, varying from 7.5 to 8.59 per cent.”
telegraphindia.com
Sources
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