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Economic Times
29-06-2025
- Business
- Economic Times
Paint giants lose their sheen as rivals slash prices, buyers trade down
India's decorative paints industry is grappling with intensified competition as new players enter the fray with aggressive pricing and discounting strategies. This growing pressure has squeezed profit margins and impacted sales realisation for leading firms, even as overall market growth remained subdued in FY25. Industry leader Asian Paints, which controls over half of the domestic market, flagged the dual challenges of weaker urban demand and competitive pressures from both new and established brands. 'Both the new entrants as well as established players adopted aggressive pricing and discounting strategies, further intensifying competition in the industry. These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year,' said Vice-Chairman Manish Choksi at the company's annual general meeting, according to a filing submitted to stock also noted that weak consumption trends and subdued discretionary spending extended repainting cycles and home maintenance schedules, leading to a drop in demand for architectural paints. 'Consumers were also moving towards more affordable options, even within the premium segments of decorative paint products across categories,' Choksi a 2.5% rise in volumes, Asian Paints reported a 5.7% decline in the value of its decorative paints business in FY25, reflecting the pricing pressure and downtrading trend. Rural demand remained relatively stable, but it wasn't enough to offset the decline in urban markets. 'The overall weak consumption trends prevalent through FY25 had a dampening impact on the domestic decorative paints market, particularly the urban markets,' said major players echoed similar concerns. Kansai Nerolac Paints, in its annual report, said that the industry showed resilience despite 'subdued demand and intensifying competitive pressures.' Rural demand stayed muted for much of the year, showing some improvement only in the third Paints, too, noted that value growth in FY25 was 'muted despite volume momentum,' attributing it to the lingering effects of FY24's price reductions and weak consumer sentiment. The company did see some traction in the construction chemicals segment. Together, Asian Paints, Berger Paints, and Kansai Nerolac account for over 75% of the Indian paints market. But in the last five to six years, the competitive landscape has dramatically changed. New players like Pidilite (Haisha Paints), Grasim (Birla Opus), and JSW Paints have expanded their presence, while acquisitions by Astral (Gem Paints) and JK Cement (Acro Paints) have further fragmented the market. Last week, JSW Paints made a significant move by acquiring a controlling stake in Akzo Nobel India, the maker of Dulux Paints, for ₹12,915 crore. Despite current headwinds, paint makers are hopeful for a turnaround in FY26. They expect improved urban demand aided by tax breaks, easing inflation, and strong monsoon forecasts to drive growth.'The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation. Rural growth is likewise expected to sustain, supported by forecasts of an above-average monsoon,' said Berger Paints Nerolac also projected a 'modest growth' in FY26, banking on premiumisation trends, a growing preference for eco-friendly products, and government programmes such as 'Housing for All' and 'Smart Cities Mission'.According to an ICICI Direct report, the Indian paints and coatings market is currently valued at $9.6 billion and is projected to grow to $15.04 billion by 2029, at a CAGR of 9.38%. With inputs from PTI
Time of India
29-06-2025
- Business
- Time of India
Paint giants lose their sheen as rivals slash prices, buyers trade down
India's decorative paints industry is grappling with intensified competition as new players enter the fray with aggressive pricing and discounting strategies. This growing pressure has squeezed profit margins and impacted sales realisation for leading firms, even as overall market growth remained subdued in FY25. Industry leader Asian Paints , which controls over half of the domestic market, flagged the dual challenges of weaker urban demand and competitive pressures from both new and established brands. 'Both the new entrants as well as established players adopted aggressive pricing and discounting strategies, further intensifying competition in the industry. These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year,' said Vice-Chairman Manish Choksi at the company's annual general meeting, according to a filing submitted to stock exchanges. He also noted that weak consumption trends and subdued discretionary spending extended repainting cycles and home maintenance schedules, leading to a drop in demand for architectural paints. 'Consumers were also moving towards more affordable options, even within the premium segments of decorative paint products across categories,' Choksi added. Despite a 2.5% rise in volumes, Asian Paints reported a 5.7% decline in the value of its decorative paints business in FY25, reflecting the pricing pressure and downtrading trend. Live Events Rural demand remained relatively stable, but it wasn't enough to offset the decline in urban markets. 'The overall weak consumption trends prevalent through FY25 had a dampening impact on the domestic decorative paints market, particularly the urban markets,' said Choksi. Other major players echoed similar concerns. Kansai Nerolac Paints , in its annual report, said that the industry showed resilience despite 'subdued demand and intensifying competitive pressures.' Rural demand stayed muted for much of the year, showing some improvement only in the third quarter. Berger Paints , too, noted that value growth in FY25 was 'muted despite volume momentum,' attributing it to the lingering effects of FY24's price reductions and weak consumer sentiment. The company did see some traction in the construction chemicals segment. Together, Asian Paints , Berger Paints, and Kansai Nerolac account for over 75% of the Indian paints market. But in the last five to six years, the competitive landscape has dramatically changed. New players like Pidilite (Haisha Paints), Grasim (Birla Opus), and JSW Paints have expanded their presence, while acquisitions by Astral (Gem Paints) and JK Cement (Acro Paints) have further fragmented the market. Last week, JSW Paints made a significant move by acquiring a controlling stake in Akzo Nobel India , the maker of Dulux Paints, for ₹12,915 crore. Despite current headwinds, paint makers are hopeful for a turnaround in FY26. They expect improved urban demand aided by tax breaks, easing inflation, and strong monsoon forecasts to drive growth. 'The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation. Rural growth is likewise expected to sustain, supported by forecasts of an above-average monsoon,' said Berger Paints India. Kansai Nerolac also projected a 'modest growth' in FY26, banking on premiumisation trends, a growing preference for eco-friendly products, and government programmes such as 'Housing for All' and 'Smart Cities Mission'. According to an ICICI Direct report, the Indian paints and coatings market is currently valued at $9.6 billion and is projected to grow to $15.04 billion by 2029, at a CAGR of 9.38%. With inputs from PTI
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Business Standard
29-06-2025
- Business
- Business Standard
New entrants intensify competition in paint industry with steep discounts
Reflecting an intense competition in the Indian decorative paints industry with new entrants offering aggressive pricing and discounting, leading players have reported impact on sales realisation and margins in FY25, but expect a modest growth this year. The industry, which also faced a demand slowdown from urban markets and downtrading, where consumers are moving towards more affordable options, expects a modest growth in FY26, driven by favourable macroeconomic conditions, rising urbanisation, and increased construction and infrastructure development activities. Asian Paints which holds over 50 per cent of the domestic market said new entrants as well as established players with their "aggressive pricing and discounting strategies" are intensifying competition, which affected its value realisations as well as the profitability. The overall weak consumption trends prevalent through FY25 had a dampening impact on the domestic decorative paints market, particularly the urban markets, Asian Paints Vice-Chairman Manish Choksi said at the latest annual general meeting of the company. "Subdued discretionary spending also led to extension of repainting cycles and home maintenance schedules, affecting the consumption of architectural paints and dcor items," he said, adding, "Consumers were also moving towards more affordable options, even within the premium segments of decorative paint products across categories." Though rural demand showed relative resilience, urban demand contributed to an overall flat performance for the entire decorative paints market, marking a below-trend performance for the last 18 months. Besides, challenges in the retail consumption were further compounded by heightened competitive pressure between new entrants and existing players. "Both the new entrants as well as established players adopted aggressive pricing and discounting strategies, further intensifying competition in the industry. These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year," Choksi said in his address to the AGM, a copy of which was submitted to bourses. A flat market and intense competition resulted in the company's decorative paints business recording a 5.7 per cent decline in value terms, despite registering a growth of 2.5 per cent in volume terms. Expressing similar concerns, Kansai Nerolac Paints said, "In FY 2024-25, the Indian paints industry demonstrated resilience in the face of subdued demand and intensifying competitive pressures." Rural demand remained muted for much of the year, with signs of recovery emerging towards Q3. The entry of new players into the market further intensified competition, prompting more aggressive pricing strategies, said the latest annual report of Kansai Nerolac Paints. Berger Paints in its latest earnings call update had said in FY25, on a standalone basis, its "value growth muted despite volume momentum, impacted by full-year effect of FY24 price reductions, softer consumer demand and traction in construction chemicals space". Asian Paints, Berger Paints, and Kansai Nerolac are the major players in the Indian paint industry, which, according to reports, control over three-fourths of the market. In the last 5-6 years, several new players have entered this market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints. Besides, pipes and fittings manufacturer Astral has acquired Gem Paints, while JK Cements acquired Acro Paints, leading to a proliferation of the sector. Last week, JSW Paints, part of Sajjan Jindal-led USD 23-billion JSW Group, announced the acquisition of a controlling stake in Akzo Nobel India Ltd, the maker of Dulux Paints, for Rs 12,915 crore. The Indian paint industry is led by Asian Paints. Besides, Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other brands. However, paint makers expect a silver lining in FY26, counting on several factors. "The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation. Rural growth is likewise expected to sustain, supported by forecasts of an above-average monsoon," said Berger Paints India. Kansai Nerolac Paints expects a 'modest growth' in the Indian paints industry in FY26, driven by favourable macroeconomic conditions "In the decorative segment, growth will be supported by higher disposable incomes, premiumisation trends, a rising consumer preference for eco-friendly products, and government initiatives such as the 'Housing for All' programme and the 'Smart Cities Mission'," it said. According to an ICICI Direct report, the size of the India paints and coatings market is estimated at USD 9.60 billion in 2024. It is expected to reach USD 15.04 billion by 2029, growing at a CAGR of 9.38 per cent between 2024 and 2029.
Time of India
29-06-2025
- Business
- Time of India
Paint industry trends: Fierce competition, urban slowdown dent sales; companies eye FY26 revival
AI image India's top paint makers are navigating a turbulent phase marked by margin pressures, weak urban demand, and intense price-based competition, even as they pin hopes on a modest recovery in FY26. According to news agency PTI, companies such as Asian Paints, Berger Paints, and Kansai Nerolac reported muted growth in FY25 amid increased discounting and a shift in consumer preferences towards affordable options. Asian Paints, which commands over 50% of the domestic decorative paints market, acknowledged the growing strain from aggressive pricing adopted by both established rivals and new entrants. 'These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year,' vice-chairman Manish Choksi said during the company's AGM, as cited by PTI. He noted that subdued discretionary spending extended repainting and maintenance cycles, while 'consumers were also moving towards more affordable options, even within the premium segments.' In FY25, Asian Paints recorded a 5.7% decline in revenue from decorative paints despite a 2.5% growth in volumes—signalling increased downtrading and pricing pressures. Choksi highlighted that challenges were compounded by "a flat market" and the emergence of aggressive competition. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Order New Blinds Online & Get $199 Home Installation Learn More Undo According to PTI, Kansai Nerolac Paints flagged similar concerns. In its annual report, it observed, 'The Indian paints industry demonstrated resilience in the face of subdued demand and intensifying competitive pressures.' While rural demand remained muted, a slight pickup was seen from the third quarter. Berger Paints also pointed to the 'full-year effect of FY24 price reductions' and "softer consumer demand" affecting its standalone value growth. The Indian decorative paints market, traditionally dominated by a handful of players such as Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel India, and Indigo Paints, has seen significant churn in recent years. Major conglomerates such as Grasim (Birla Opus), JSW Paints, Pidilite (Haisha Paints), and Astral (which acquired Gem Paints) have entered the fray. Last week, JSW Paints added to the consolidation trend by acquiring a controlling stake in Akzo Nobel India Ltd, the maker of Dulux Paints, for Rs 12,915 crore. Despite a difficult FY25, paint companies see a more optimistic outlook for FY26. 'The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation,' said Berger Paints in its latest earnings update. Kansai Nerolac echoed the sentiment, predicting modest growth ahead. 'In the decorative segment, growth will be supported by higher disposable incomes, premiumisation trends, a rising consumer preference for eco-friendly products, and government initiatives such as the 'Housing for All' programme and the 'Smart Cities Mission',' the company said. According to an ICICI Direct report cited by PTI, the Indian paints and coatings market is valued at $9.6 billion in 2024 and is expected to grow at a CAGR of 9.38% to reach $15.04 billion by 2029. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
29-06-2025
- Business
- Mint
Aggressive pricing, discounting by new entrants intensifying competition in paint industry
New Delhi, Jun 29 (PTI) Reflecting an intense competition in the Indian decorative paints industry with new entrants offering aggressive pricing and discounting, leading players have reported impact on sales realisation and margins in FY25, but expect a modest growth this year. The industry, which also faced a demand slowdown from urban markets and downtrading, where consumers are moving towards more affordable options, expects a modest growth in FY26, driven by favourable macroeconomic conditions, rising urbanisation, and increased construction and infrastructure development activities. Asian Paints which holds over 50 per cent of the domestic market said new entrants as well as established players with their "aggressive pricing and discounting strategies" are intensifying competition, which affected its value realisations as well as the profitability. The overall weak consumption trends prevalent through FY25 had a dampening impact on the domestic decorative paints market, particularly the urban markets, Asian Paints Vice-Chairman Manish Choksi said at the latest annual general meeting of the company. "Subdued discretionary spending also led to extension of repainting cycles and home maintenance schedules, affecting the consumption of architectural paints and décor items," he said, adding, "Consumers were also moving towards more affordable options, even within the premium segments of decorative paint products across categories." Though rural demand showed relative resilience, urban demand contributed to an overall flat performance for the entire decorative paints market, marking a below-trend performance for the last 18 months. Besides, challenges in the retail consumption were further compounded by heightened competitive pressure between new entrants and existing players. "Both the new entrants as well as established players adopted aggressive pricing and discounting strategies, further intensifying competition in the industry. These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year," Choksi said in his address to the AGM, a copy of which was submitted to bourses. A flat market and intense competition resulted in the company's decorative paints business recording a 5.7 per cent decline in value terms, despite registering a growth of 2.5 per cent in volume terms. Expressing similar concerns, Kansai Nerolac Paints said, "In FY 2024-25, the Indian paints industry demonstrated resilience in the face of subdued demand and intensifying competitive pressures." Rural demand remained muted for much of the year, with signs of recovery emerging towards Q3. The entry of new players into the market further intensified competition, prompting more aggressive pricing strategies, said the latest annual report of Kansai Nerolac Paints. Berger Paints in its latest earnings call update had said in FY25, on a standalone basis, its "value growth muted despite volume momentum, impacted by full-year effect of FY24 price reductions, softer consumer demand and traction in construction chemicals space". Asian Paints, Berger Paints, and Kansai Nerolac are the major players in the Indian paint industry, which, according to reports, control over three-fourths of the market. In the last 5-6 years, several new players have entered this market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints. Besides, pipes and fittings manufacturer Astral has acquired Gem Paints, while JK Cements acquired Acro Paints, leading to a proliferation of the sector. Last week, JSW Paints, part of Sajjan Jindal-led USD 23-billion JSW Group, announced the acquisition of a controlling stake in Akzo Nobel India Ltd, the maker of Dulux Paints, for ₹ 12,915 crore. The Indian paint industry is led by Asian Paints. Besides, Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are other brands. However, paint makers expect a silver lining in FY26, counting on several factors. "The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation. Rural growth is likewise expected to sustain, supported by forecasts of an above-average monsoon," said Berger Paints India. Kansai Nerolac Paints expects a 'modest growth' in the Indian paints industry in FY26, driven by favourable macroeconomic conditions "In the decorative segment, growth will be supported by higher disposable incomes, premiumisation trends, a rising consumer preference for eco-friendly products, and government initiatives such as the 'Housing for All' programme and the 'Smart Cities Mission'," it said. According to an ICICI Direct report, the size of the India paints and coatings market is estimated at USD 9.60 billion in 2024. It is expected to reach USD 15.04 billion by 2029, growing at a CAGR of 9.38 per cent between 2024 and 2029.
