By IANS,
Kolkata : The Rs.24,000 crore paint sector in India is likely to touch Rs.100,000 crore by 2020, a top official of the industry’s apex body said Thursday.
“Buoyed by the vibrant domestic demand, the industry has registered double digit growth. Different market statistics indicate that the industry, currently estimated at Rs.24,000 crore, has the potential to grow to Rs. one lakh crore by 2020,” Indian Paint Association (IPA) president D.P. Basu said at the body’s 48th annual general meeting here.
He said there was need to improve the ratio of decorative to industrial paints in value terms to match international standards. The current ratio in India is 67:33 while the international ratio is 50:50.
The bourgeoning automotive industry and real estate sector are also likely to contribute largely towards the growth of the paint industry.
He also said the country loses over Rs.200,000 crore annually due to the menace of corrosion. “There is a need for effective practices to control and prevent erosion which offers a big opportunity to the paint industry to concentrate on anti-corrosive paints.”
In spite of opportunities and growth, the industry has been adversely affected by inflation, weak global capital markets and higher cost of capital.
Basu also said paints being categorised as hazardous had constantly been under the environmental scanner but hoped the issue would be solved quickly.
“The issue of lead content in paints and its ill effects on the environment has always been on our mind. The big players in the industry have already done away with lead and by the year end the whole industry would be manufacturing lead free paints.”
He hoped the implementation of the goods and services tax (GST) would also benefit the industry.