Home Improvement in India

Euromonitor International
May 2020
HOME IMPROVEMENT IN INDIA Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
More Year-round Demand Being Seen in Home Improvement ................................................ 1
Consumers Looking for An Experience From Their Bathroom and Sanitaryware ..................... 1
Shift From Unbranded To Branded Products Due To Government Legislation ........................ 1
Competitive Landscape ................................................................................................................ 2
Asian Paints Remains the Leading Player in Home Improvement ............................................ 2
Hsil Looking To Offer Consumers More Customised Offerings ................................................ 2
Tile Manufacturers Expand Their Presence Nationwide ........................................................... 3
Category Data .............................................................................................................................. 3
Table 1 Sales of Home Improvement by Category: Value 2014-2019 ...................... 3
Table 2 Sales of Home Improvement by Category: % Value Growth 2014-
2019 ............................................................................................................. 3
Table 3 NBO Company Shares of Home Improvement: % Value 2015-2019 ........... 4
Table 4 LBN Brand Shares of Home Improvement: % Value 2016-2019 .................. 4
Table 5 Distribution of Home Improvement by Format: % Value 2014-2019 ............ 5
Table 6 Forecast Sales of Home Improvement by Category: Value 2019-2024........ 6
Table 7 Forecast Sales of Home Improvement by Category: % Value Growth
2019-2024 .................................................................................................... 6

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HOME IMPROVEMENT IN INDIA

HEADLINES
▪ Home improvement in India registers 6% current value growth to reach INR651.4 billion in
2019
▪ Home improvement becoming more year-round rather than being driven by festive seasons
▪ Home improvement sees continued but slower current value growth in 2019
▪ Asian Paints maintains its lead with a 22% value share in 2019
▪ Value sales are expected to rise at a 7% current value CAGR (3% CAGR at 2019 constant
prices) over the forecast period to INR925.7 billion in 2024

PROSPECTS

More Year-round Demand Being Seen in Home Improvement

The influence of seasonal demand has been in decline in home improvement. A change in
consumer buying behaviour has been observed in India, with the previous sales spikes seen
during the festive seasons now transforming into demand that is constant throughout the year.
This has to a great extent been due to increasing repainting among affluent consumers and the
shift from unbranded to branded products in the economy segment due to the launch of cheaper
products from Asian paint brands. Other factors driving growth are rising disposable incomes
among the burgeoning middle class as well as strong demand from rural areas, aggressive retail
channel activity and the GST rate cut from 28% to 18%.

Consumers Looking for An Experience From Their Bathroom and

Sanitaryware
There is an increasing attitudinal shift from product towards experience in bathroom and
sanitaryware in India. This is seeing an increasing emphasis on styling in bathroom and
sanitaryware fittings as people want at home what they might see in a hotel room when
travelling, for example. Manufacturers are therefore enhancing their product and marketing
efforts. Growth in bathroom and sanitaryware in India is being driven by increasing consumer
awareness of the various products and designs they can have in their bathrooms. This
awareness has led to various current trends in the industry that are boosting growth.
Some of these trends include complete bathroom solutions, water conservation technology
and rising sales of premium products. With increasing urbanisation and awareness about safe
sanitation, the demand for other sanitary products such as sinks, bidets and pedestals is
expected to continue increasing in the coming years. The government’s “Swacch Bharat
Mission” (Clean India Mission) initiative is helping to raise awareness of the importance of
proper hygiene and sanitation habits. The government is funding the construction of toilets, but
Indians have also become more aware and are taking steps to ensure that they have bathrooms
and sanitation structures in their houses or communities.

Shift From Unbranded To Branded Products Due To Government

Legislation
The tile industry is growing due to an expanding middle-class population, rising per capita
consumption and urbanisation. However, India’s tile industry remains very disorganised. Morbi

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in Gujarat accounts for 65-70% of total production in India and houses over 600 production
units. The National Green Tribunal recently passed an order directing ceramic units in Morbi and
Wankaner to shut down coal gasifiers, with compliance with this expected to be a positive step
for organised and branded players. The growth of organised production is also being driven by
the increasing regulations in the ceramic tile industry, a structural shift in customer preferences
towards branded products and the increasing focus on value-added products.
Indian consumers are also increasingly preferring to use tiles in areas other than the kitchen
and bathroom in their homes, such as the living room and bedroom. This demand is driven by
products that are not only functional but also aesthetically appealing. Demand includes not just
floor tiles but also wall tiles, which can be an alternative to decorative paint, reducing the
maintenance of repainting and adding a beauty element to the walls. Consumers are also
increasingly looking for functionalities such as slip-resistance, antibacterial coatings and
scratch-resistant properties.

COMPETITIVE LANDSCAPE

Asian Paints Remains the Leading Player in Home Improvement

Asian Paints Ltd (APL) continued to lead value sales of home improvement in 2019. APL
offers a wide range of products that are promoted by means of numerous marketing activities
throughout the year. APL also has a strong distribution network, selling through multibrand
outlets as well as its own stores. It operates through differentiated retail formats, which include
one-stop stores and consultation centres where experts provide advice. The company also
strengthened its distribution network by opening 3,000 new outlets and 400 more Colour Idea
stores.
APL’s strong position in decorative paint was further improved by the growth generated from
the launch of paints in the economy segment, which were very popular in the second-tier and
third-tier cities of India. APL launched Tractor Emulsion Sparc and Ace Sparc, which enjoyed a
very positive response, helping to further boost growth in the lower end, taking sales from the
unorganised channel. The company also launched Royale Health Shield, which is an
antibacterial paint claimed to kill 99% of germs, along with top-end products like Ultima Protek
and Wallpapers.
Keeping the consumer experience in mind, APL has services such as Ezycolour consultancy,
where consumers can get an exclusive digital preview. APL also has the “Colour with Asian
Paints” mobile app on which consumers can visualise and see a range of curated room shots. It
also has the “Beautiful Homes” website, a portal containing “inspiring homes, workspaces and
DIY guides”.

Hsil Looking To Offer Consumers More Customised Offerings

HSIL is focusing on innovation and technology to launch premium products to provide more
customised solutions. HSIL has a plethora of options for customisation and providing user
experience. For example, HSIL’s Hindware Lacasa stores provide consumers with first-hand
experience of all the new concepts and product features it is offering. HSIL’s Hindware
Dreambath visualisation app lets consumers customise their bathroom from a selection of 100
new customised bathroom themes according to the consumer’s preferences and personality.
The app makes use of AR and VR to let the consumer have an immersive experience of the
bathroom, with the customer able to choose, view and customise in 3D mode and provide a
360-degree view of the selection.

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Tile Manufacturers Expand Their Presence Nationwide

Wall and floor covering manufacturers such as Kajaria Ceramics, H&R Johnson (India) and
Somany Ceramics have been opening new stores and adding dealers to help drive sales.
Kajaria Ceramics, which is the leading player in both wall and floor covering, has added 300
dealers to its network, extensively in second-tier towns. Somany Ceramics has added some 500
new dealers in key markets. H&R Johnson (India) was planning to open 20 new experience
centres in 2019 to display all its collections.

CATEGORY DATA
Table 1 Sales of Home Improvement by Category: Value 2014-2019

INR million
2014 2015 2016 2017 2018 2019

Bathroom and Sanitaryware 30,605.1 34,277.7 37,009.7 40,125.9 44,146.5 48,472.9

Floor Covering 125,324.9 138,267.9 143,829.7 152,189.3 160,122.6 162,098.0
- Carpets 679.8 759.3 820.8 885.9 951.4 1,016.8
- Floor Tiles 124,645.2 137,508.6 143,008.9 151,303.4 159,171.2 161,081.2
- Wooden Flooring - - - - - -
- Other Floor Covering - - - - - -
Hand Tools 4,412.2 4,797.8 5,184.0 5,546.9 5,879.7 6,207.9
Hardware 15,885.7 17,067.0 18,212.2 19,037.7 19,806.2 20,507.5
Home Paint 230,726.9 247,454.6 261,064.6 276,942.6 309,960.3 336,195.3
- Lacquer and Varnish 2,431.7 2,608.0 2,751.4 2,872.3 3,001.6 3,145.1
- Decorative Paint 228,295.2 244,846.6 258,313.2 274,070.3 306,958.7 333,050.2
Kitchen Sinks - - - - - -
Power Tools 3,271.9 3,635.7 3,952.1 4,253.8 4,562.6 4,881.2
- Drills 2,836.8 3,090.0 3,303.7 3,496.3 3,686.7 3,871.8
-- Corded Drills 2,757.1 2,997.0 3,193.0 3,365.4 3,532.0 3,691.0
-- Cordless Drills 79.6 93.0 110.6 130.9 154.7 180.8
- Other Power Tools 435.2 545.7 648.5 757.4 875.9 1,009.3
-- Other Corded Power 426.9 534.9 632.4 734.9 845.5 970.6
Tools
-- Other Cordless Power 8.3 10.8 16.0 22.5 30.4 38.7
Tools
Wall Covering 42,150.9 45,834.9 48,585.0 51,800.1 52,173.1 52,694.8
- Wall Tiles 42,150.9 45,834.9 48,585.0 51,800.1 52,173.1 52,694.8
- Wallpaper - - - - - -
Other Home Improvement 14,306.5 15,571.2 16,865.2 18,014.6 19,214.4 20,330.9
Home Improvement 466,684.1 506,906.8 534,702.5 567,910.9 615,865.4 651,388.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Sales of Home Improvement by Category: % Value Growth 2014-2019

% current value growth

2018/19 2014-19 CAGR 2014/19 Total

Bathroom and Sanitaryware 9.8 9.6 58.4

Floor Covering 1.2 5.3 29.3
- Carpets 6.9 8.4 49.6
- Floor Tiles 1.2 5.3 29.2
- Wooden Flooring - - -
- Other Floor Covering - - -

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Hand Tools 5.6 7.1 40.7

Hardware 3.5 5.2 29.1
Home Paint 8.5 7.8 45.7
- Lacquer and Varnish 4.8 5.3 29.3
- Decorative Paint 8.5 7.8 45.9
Kitchen Sinks - - -
Power Tools 7.0 8.3 49.2
- Drills 5.0 6.4 36.5
-- Corded Drills 4.5 6.0 33.9
-- Cordless Drills 16.9 17.8 127.1
- Other Power Tools 15.2 18.3 131.9
-- Other Corded Power Tools 14.8 17.9 127.4
-- Other Cordless Power Tools 27.2 36.1 367.0
Wall Covering 1.0 4.6 25.0
- Wall Tiles 1.0 4.6 25.0
- Wallpaper - - -
Other Home Improvement 5.8 7.3 42.1
Home Improvement 5.8 6.9 39.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 NBO Company Shares of Home Improvement: % Value 2015-2019

% retail value rsp

Company 2015 2016 2017 2018 2019

Asian Paints Ltd (APL) 20.4 20.6 20.7 21.0 22.3

Berger Paints India Ltd 5.4 5.5 5.5 5.4 5.7
Kansai Nerolac Paints Ltd 5.1 5.1 5.0 5.2 5.3
Kajaria Ceramics Ltd 3.2 3.1 3.2 3.1 3.2
H&R Johnson (India) Pvt 2.8 2.2 1.9 1.8 1.8
Ltd
Akzo Nobel India Ltd 2.0 2.0 2.0 1.8 1.7
Somany Ceramics Ltd 2.2 2.3 1.9 1.7 1.6
HSIL Ltd 1.6 1.6 1.5 1.6 1.6
Parryware Roca Pvt Ltd 1.0 1.1 1.1 1.2 1.2
Asian Granito India Ltd 0.8 0.9 1.0 1.0 1.0
Cera Sanitaryware Ltd 0.8 0.9 0.9 0.9 0.9
RAK India Pvt Ltd 0.7 0.7 0.7 0.7 0.7
Jaquar & Co Pvt Ltd 0.5 0.6 0.6 0.6 0.6
Nitco Ltd 1.0 0.9 0.9 0.6 0.5
Kohler India Pvt Ltd 0.4 0.4 0.5 0.5 0.5
Nippon Paint (India) 0.5 0.5 0.5 0.5 0.5
Pvt Ltd
Shalimar Paints Ltd 0.5 0.5 0.4 0.4 0.3
Bosch Ltd 0.2 0.2 0.2 0.2 0.2
Duravit India Pvt Ltd 0.2 0.2 0.2 0.2 0.2
Others 50.6 50.9 51.3 51.8 50.4
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 LBN Brand Shares of Home Improvement: % Value 2016-2019

% retail value rsp

Brand (GBO) Company (NBO) 2016 2017 2018 2019

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Asian Paints Asian Paints Ltd (APL) 20.6 20.7 21.0 22.3
Berger Berger Paints India Ltd 5.5 5.5 5.4 5.7
Nerolac (Kansai Kansai Nerolac Paints Ltd 5.1 5.0 5.2 5.3
Paint Co Ltd)
Kajaria Kajaria Ceramics Ltd 3.1 3.2 3.1 3.2
Johnson (Prism H&R Johnson (India) Pvt 2.2 1.9 1.8 1.8
Cement Ltd) Ltd
Dulux (Akzo Nobel NV) Akzo Nobel India Ltd 2.0 2.0 1.8 1.7
Somany Somany Ceramics Ltd 2.3 1.9 1.7 1.6
Hindware HSIL Ltd 1.6 1.5 1.6 1.6
Parryware Parryware Roca Pvt Ltd 1.1 1.1 1.2 1.2
Asian Granito Asian Granito India Ltd 0.9 1.0 1.0 1.0
Cera Cera Sanitaryware Ltd 0.9 0.9 0.9 0.9
RAK Ceramics (Ras RAK India Pvt Ltd 0.7 0.7 0.7 0.7
Al Khaimah Ceramics
PSC)
Jaquar Jaquar & Co Pvt Ltd 0.6 0.6 0.6 0.6
Nitco Nitco Ltd 0.9 0.9 0.6 0.5
Kohler (Kohler Co) Kohler India Pvt Ltd 0.4 0.5 0.5 0.5
Nippon Paint Nippon Paint (India) 0.5 0.5 0.5 0.5
(Nipsea Group) Pvt Ltd
Shalimar Shalimar Paints Ltd 0.5 0.4 0.4 0.3
Bosch (Robert Bosch Bosch Ltd 0.2 0.2 0.2 0.2
GmbH)
Duravit (Duravit AG) Duravit India Pvt Ltd 0.2 0.2 0.2 0.2
Others Others 50.9 51.3 51.8 50.4
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 Distribution of Home Improvement by Format: % Value 2014-2019

% retail value rsp

2014 2015 2016 2017 2018 2019

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 100.0

- Grocery Retailers 2.1 2.1 2.2 2.3 2.3 2.3
-- Supermarkets - - - - - -
-- Hypermarkets 2.1 2.1 2.2 2.3 2.3 2.3
-- Discounters - - - - - -
-- Other Grocery - - - - - -
Retailers
- Mixed Retailers 3.4 3.5 3.6 3.7 3.7 3.6
-- Department Stores 3.4 3.5 3.6 3.7 3.7 3.6
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
- Non-Grocery Specialists 94.5 94.4 94.2 93.9 94.0 94.1
-- Home and Garden 67.5 67.3 66.7 66.5 65.3 64.2
Specialist Retailers
--- Home Improvement 67.5 67.3 66.7 66.5 65.3 64.2
and Gardening Stores
--- Homewares and Home - - - - - -
Furnishing Stores
-- Other Non-Grocery 27.0 27.1 27.5 27.4 28.7 30.0
Specialists
Non-Store Retailing - - - - - -
- Homeshopping - - - - - -
- E-Commerce - - - - - -

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- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 Forecast Sales of Home Improvement by Category: Value 2019-2024

INR million
2019 2020 2021 2022 2023 2024

Bathroom and Sanitaryware 48,472.9 50,411.8 52,157.3 53,682.9 54,964.6 55,981.4

Floor Covering 162,098.0 163,470.8 164,436.8 165,114.8 165,588.1 165,915.5
- Carpets 1,016.8 1,038.8 1,052.8 1,061.7 1,065.5 1,063.8
- Floor Tiles 161,081.2 162,432.1 163,384.0 164,053.1 164,522.6 164,851.6
- Wooden Flooring - - - - - -
- Other Floor Covering - - - - - -
Hand Tools 6,207.9 6,271.6 6,292.1 6,287.8 6,258.7 6,204.7
Hardware 20,507.5 20,300.7 19,939.9 19,491.7 18,962.4 18,357.4
Home Paint 336,195.3 355,116.3 372,657.7 389,741.0 406,290.2 422,189.7
- Lacquer and Varnish 3,145.1 3,169.7 3,188.4 3,210.5 3,239.7 3,274.1
- Decorative Paint 333,050.2 351,946.6 369,469.3 386,530.6 403,050.5 418,915.6
Kitchen Sinks - - - - - -
Power Tools 4,881.2 5,004.8 5,104.6 5,196.1 5,278.7 5,320.2
- Drills 3,871.8 3,890.4 3,881.4 3,856.2 3,814.9 3,757.5
-- Corded Drills 3,691.0 3,689.6 3,661.4 3,617.9 3,559.6 3,487.0
-- Cordless Drills 180.8 200.8 220.0 238.3 255.3 270.5
- Other Power Tools 1,009.3 1,114.4 1,223.2 1,339.9 1,463.8 1,562.7
-- Other Corded Power 970.6 1,067.0 1,166.1 1,271.9 1,382.8 1,481.8
Tools
-- Other Cordless Power 38.7 47.4 57.2 68.1 80.9 80.9
Tools
Wall Covering 52,694.8 53,135.4 53,492.4 53,764.2 53,949.1 54,046.2
- Wall Tiles 52,694.8 53,135.4 53,492.4 53,764.2 53,949.1 54,046.2
- Wallpaper - - - - - -
Other Home Improvement 20,330.9 20,574.2 20,713.4 20,743.4 20,733.3 20,679.5
Home Improvement 651,388.4 674,285.7 694,794.3 714,022.0 732,025.1 748,694.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 7 Forecast Sales of Home Improvement by Category: % Value Growth 2019-2024

% constant value growth

2019/2020 2019-24 CAGR 2019/24 Total

Bathroom and Sanitaryware 4.0 2.9 15.5

Floor Covering 0.8 0.5 2.4
- Carpets 2.2 0.9 4.6
- Floor Tiles 0.8 0.5 2.3
- Wooden Flooring - - -
- Other Floor Covering - - -
Hand Tools 1.0 0.0 -0.1
Hardware -1.0 -2.2 -10.5
Home Paint 5.6 4.7 25.6
- Lacquer and Varnish 0.8 0.8 4.1
- Decorative Paint 5.7 4.7 25.8
Kitchen Sinks - - -
Power Tools 2.5 1.7 9.0

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- Drills 0.5 -0.6 -3.0

-- Corded Drills 0.0 -1.1 -5.5
-- Cordless Drills 11.1 8.4 49.6
- Other Power Tools 10.4 9.1 54.8
-- Other Corded Power Tools 9.9 8.8 52.7
-- Other Cordless Power Tools 22.5 15.9 109.0
Wall Covering 0.8 0.5 2.6
- Wall Tiles 0.8 0.5 2.6
- Wallpaper - - -
Other Home Improvement 1.2 0.3 1.7
Home Improvement 3.5 2.8 14.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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