Professional Documents
Culture Documents
Indian Paint Investment Opportunities
Indian Paint Investment Opportunities
January 2008
420 Lexington Avenue . Suite 300 . New York, NY 10170 . 212-297-6107 . www.virtusglobal.com
Market Snapshot
Market Growth of about $200 - $400 million $2 billion Indian Paint Industry
per year over next 5 years
developed countries
$1.2 billion 70%
International retailers had until January 2006 been able to operate in India only
through franchise arrangements with local partners
Starting February 2006, foreign single retail brands are allowed to:
road-marking paints to all parts of the building paints sector, whether interior,
exterior, waterproofing or floor coatings.
Increase in manufacturing activities: Over 40% of the industrial sector takes the
form of OEM finishes, which is expected to grow steadily as a result of increasing
demand for consumer goods in India as well as India’s position now as a leading
manufacturing hub for the supply of goods to the southeast Asian and other world
markets
Less Seasonality: About 65 per cent of the demand for decorative paints stems
from repainting. Rising aspirational levels, Shift in the perception of paints as
having a protective value rather than a mere decorative have diminished the
impact of seasonality
INDIAN PAINT MARKET ANALYSIS
• Nearly 20 per cent of all decorative paints sold in *Source: HDFC Securities Analyst Report
India are distempers
INDIAN PAINT MARKET ANALYSIS
Industrial Paints
Four Major Players control 50% of the Industrial Paints: Revenue Distribution
market share
Over the next few years, the ratio of industrial paints to decorative paints is
expected to be 50:50, more in line with the global trend. Currently it is 30:70.
With the decorative segment bottoming out, companies are increasingly focusing
on industrial paints
Virtus Global Partners is a global investment and advisory firm with offices in the US
and India. Our primary focus is on US and India based cross border businesses.
We provide a full range of investment banking services including cross border M&A,
strategic partnerships, fundraising and general advisory services. Our corporate clients
include mid to large size venture-backed enterprises as well as quoted companies.
Our focus sectors include technology and technology enabled businesses,
pharmaceuticals, auto ancillary, food processing and industrials.
Virtus Global Partners provides:
Deep knowledge of US and Indian core industry markets;
INDIAN PAINT MARKET ANALYSIS