Saudi Arabian paints and varnishes market grows 39% over 2007-12; development pace rises

significantly following 2008-09 global recession. Despite decrease of 10% points from 2007,
reliance on imports remains relatively high, with more than half of paints and varnishes in Saudi
Arabia imported in 2012. Labor costs account for 14% of total outlay and profit margin up to
35% of turnover in 2012. 8% CAGR in local players turnover projected over forecast period,
with development dependent on countrys construction industry expansion and government
investments in infrastructure.
Falling crude Oil prices a margin booster for paint companies
Shares of paint makers rose on Monday as international crude oil prices continued to fall, raising
hopes of better profit margins. Cheaper oil reduces input costs for paint companies, which use
crude derivatives.
Asian Paints Ltd shares rose to record Rs.801 apiece, before closing 7.13% up at Rs.796.75. The
brokerage unit of Bank of America Merrill Lynch has upgraded Asian Paints from neutral to
buy, Bloomberg reported. The brokerage noted that higher demand due to the improving
economy and favourable raw material costsmainly falling crudecan boost the companys
profit margins.
Berger Paints India Ltd rose 11.78% to Rs.439.20, Kansai Nerolac Paints Ltd 3.07%
to Rs.2,073.45, Shalimar Paints Ltd8.24% to Rs.181.90 and Akzo Nobel India Ltd 4.21%
to Rs.1,387.75.
Brent crude price for January settlement dropped as much as $2.25 a barrel to $67.90 on the ICE
Futures Europe exchange, the lowest intra-day price since February 2010

Reference: http://www.livemint.com/Money/7cQ2I6h24qpluAfdC1CvEM/Paint-shares-jump-onlower-crude-oil-prices.html