Paint makers forecast strong FY27 demand
Major paint manufacturers expect double-digit growth in FY27, driven by housing and infrastructure demand. They are implementing further price increases to counter rising input costs, while competition across all market segments remains intense.
Leading paint companies anticipate continued double-digit growth as the festive season approaches. They are implementing fresh price hikes to offset rising input costs, even as competitive pressures show no sign of easing.
Asian Paints, Berger Paints, Kansai Nerolac, and JSW Dulux all see sustained demand from housing, infrastructure, and automotive sectors. Their optimism is tempered by concerns over crude oil price volatility and geopolitical tensions, as petroleum derivatives form a bulk of their production costs.
Growth projections for FY27
Executives outlined their expectations during recent earnings calls. Berger Paints and JSW Dulux projected double-digit revenue growth for the fiscal year. Asian Paints guided for a volume growth of 8-10 percent. The company's Managing Director, Amit Syngle, said demand conditions remained "decent" through the June quarter. He pointed to the upcoming festive period as a key driver.
"We are entering a festive quarter where the month of September becomes good enough from some festive sales," Syngle said.
Asian Paints reported a consolidated net profit of Rs 1,559.45 crore for the June quarter, a jump of 39.6 percent. Revenue from operations rose 18 percent to Rs 10,541.94 crore. Syngle noted that growth in major metropolitan areas lagged behind smaller towns, but this was offset by strong government-led B2B spending in larger cities.
Price increases and cost pressures
Companies are pushing through price increases to protect margins. Berger Paints CEO Abhijit Roy said the full quarterly impact of hikes taken in the second quarter would support revenue. He detailed that volume growth might be around 7.5 to 8 percent, with price increases varying between 7.5 and 8.59 percent.
Kansai Nerolac's Managing Director, Pravin Chaudhari, highlighted ongoing risks from supply-chain disruptions and raise crude oil prices. He indicated further price adjustments were coming. "In quarter 2, I believe decorative paints, we should see an additional 3-odd percent, which will flow through," Chaudhari said. He added that industrial paints could see another 3 to 5 percent hike, following a roughly 5 percent increase in the first quarter.
JSW Dulux reported that growth remained fairly strong, with July-typically a weak month-still delivering healthy numbers. Joint MD Rajiv Rajgopal said the company continues to target double-digit growth in both volume and value, expecting strong festive demand.
Intensifying market competition
Competition is fierce across all price segments. Amit Syngle of Asian Paints said rivalry remained intense "across the board" and predicted it could sharpen further in the economy segment, where heavier discounting is used to attract contractors. He stated the intensity gap between economy and premium segments was not significant.
Abhijit Roy of Berger Paints simply described the competitive environment as "intense" and "challenging." The market has seen several new entrants over the last five to six years, including Pidilite with Haisha Paints, Grasim with Birla Opus, and JSW Paints. Syngle noted that competition now comes from all players, not only one or two.
Asian Paints, Berger Paints, and Kansai Nerolac are the dominant players, reportedly controlling over three-fourths of the Indian paint market. Despite the competitive and cost challenges, industry leaders see supportive demand from infrastructure, construction, and automotive sectors continuing through FY27.
