By IANS,
Kolkata : The growth of the Indian paint industry (IPA) could shrink to single-digit this fiscal due to slackening demand following the slowdown in the automotive industry and rising input costs, the president of the industry’s apex body Ramakanth V Akula said Wednesday.
“During 2011-12, the Indian paint industry, estimated at Rs.29,000 crore, had achieved a volume growth of nearly 12 percent and value growth of about 22 percent. But in the current year, the volume growth could shrink to just eight percent while the value growth may come down to 15 percent,” Akula said at the 49th annual general meeting of the Indian Paint Association (IPA) here.
“A volatile rupee has made the matter worse”.
The slowdown in the automotive industry which contributes nearly 45 percent of the demand for industrial paints, has severely affected the paint industry.
“The production of passenger vehicles in the last fiscal recorded a growth of a meagre 4.72 percent as against 26.72 percent during 2010-11. The domestic sales of passenger and commercial vehicles have also registered steady decline in growth,” said Akula.
He said the raw material-intensive paint industry has been adversely affected by the government’s decision to impose anti-dumping and safeguard duties on imports of materials like titanium dioxide, phthalic anhydride and penta-erythritol.
“The stringent environmental laws globally have compounded the problem resulting in a steep rise in the prices of titanium dioxide,” added Akula.