Indian Paints Industry 2024: New Players Reshaping Competitive Landscape

The Indian paints industry, known for its steady growth and resilience, experienced a transformative year in 2024, marked by new market entrants and intensified competition among established brands. With the market valued at Rs 7,981 crore and projected to grow to Rs 12,542 crore by 2029, the industry is fueled by urbanization, rising disposable incomes, and increasing construction activities.

Key Industry Developments

1. Impact of New Entrants
The entry of Birla Opus, backed by a Rs 10,000 crore investment from Grasim Industries of the Aditya Birla Group, is a game-changer. Launched in February 2024, Birla Opus has captured a 2-3% market share within months. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed confidence in becoming the second-largest player in the market within five years.

Other significant newcomers include Astral Paints and Haisha Paints:

• Astral Paints, launched in May 2024 after acquiring Gem Paints in 2022 for Rs 1.94 billion, leveraged its expertise in building materials.
• Haisha Paints, introduced by Pidilite Industries in November 2024, builds on the company’s strong market reputation with products like Fevicol and Dr. Fixit.

These new players challenge dominant brands like Asian Paints, Nerolac, Berger Paints, and Nippon Paints, reshaping the competitive dynamics of the sector.

2. Established Players Adapt to Competition
In response to the intensified competition, established brands have adopted strategies to defend their market share:

• Asian Paints and Berger Paints raised portfolio prices by 0.7% to 1% to maintain profitability.
• Companies are expanding production capacities, adopting new technologies, and increasing advertising budgets.

Despite these efforts, challenges persist. Asian Paints reported a 5.3% drop in Q2 revenues, down to Rs 8,028 crore from Rs 8,479 crore in the same period last year.

3. Strategic Industry Decisions
The influx of new players aligns with strategic acquisitions. For instance, JK Cement’s 2022 acquisition of a 60% stakein Acro Paints for Rs 153 crore marked its foray into the paints sector, signaling a trend of diversification within the construction materials industry.

Market Outlook

Industry experts predict healthy competition will spur innovation and growth, keeping established players agile. Abhijit Roy, CEO of Berger Paints, acknowledged a 1.5% growth dip but emphasized that increased competition is a motivator to improve.

As the market evolves, the paints industry is poised for a dynamic future, balancing established dominance with the fresh energy of new entrants.