CHAPTER- 5

BRIEF ABOUT PAINT INDUSTRY

5.1 Introduction
5.2 Definition
5.3 Functions of Paint
5.4 Paint Systems & Components
5.5 Classification of Paint
5.6 Properties of Paint
5.7 Challenges faced by Indian Paint Industry
5.8 List of Selected Paint Units in Gujarat

5.1 INTRODUCTION:
Colour has fascinated culture throughout history, every age and every region has
produced dyes and pigment depending on the available resources. Colour has been
with us for more than 20,000 years. The evidence can be found in the cave paintings.
The tradition of painting in Indian subcontinent grew and developed overtime,
resulting in a hilly developed and finest style, incorporating the culture and faith of
the region and religion. The history of Indian Paint Industry is as old as the history of
the Indian people. Indian paints always embrace rich colours and clear symbolism,
using specific iconography to make religious figures clearly recognizable.

The Indian paint industry has recently completed lOOyears of manufacturing.

Manufacturing of Indian paints started around 1902. The Indian paint industry has
seen a gradual shift in the preferences of people from the traditional white wash to
higher quality paints like emulsions and enamel paints. Growing popularity of new
variants providing improved finishing and textures, increasing per capita income of
people and efforts on the part of manufacturers to introduce improved versions like
eco-friendly, odour free and dust and water resistant paints, have propelled the growth
of the paint market in India. Efforts on the part of the manufacturers to introduce
innovative technologies in the paint market have led to a growth in demand for paints
in India. Paint manufacturers are giving due attention to consumers colour
preferences. The market is witnessing introduction of breakthrough technologies to
improve the paint quality. Paint companies are also increasingly investing in their
R&D, to carve out a differentiated product in the market. For instance, paints, which
use water in place of solvent, have been introduced in the market. They are better in
performance and not harmful for health as it emits little or no Volatile Organic
Compounds (VOC). The industry has also seen the introduction of solar reflective
coating, which is a roof surface coating that lowers the surface temperatures of the
roof resulting into greater comfort inside the building. New technologies in the paint
market would lead to better performance, cost reduction and wider applications of
paints in India.
The Indian Paint Industry is only segment of the Indian chemical industry that has
been sharing a consistent double digit growth rate in the last five years. The growth
rates recorded over the last few years have been extremely encountered with upward
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trend in paint demand and consumption. The large scale sector is dominated by four
players, namely Asian Paints, Nerolac Paints, Berger Paint and Dulux India Paints.
The small scale sector consists of over 5000 players. This growth has been closely
linked with the business and industrial development of modem India. Performance is
anchored today in a wide variety of decorative and industrial paints. An ISO 9001
company has come a long way in the highly competitive Indian paints industry and
has its own R&D developing, standardizing and ensuring quality assurance of its
products. It is global company in a real sense. Indian housing sectors are booming and
also increasing urbanization has made easy availability of housing loans. This has
been resulted into a shift from semi-permanent to permanent housing structures.
Growth in the decorative paints segment accounts for nearly 65-70% of the Indian
paint industry. Seasons are also involved in the demand for decorative paints, where
consumption peaks around festive time.
Over the past few years, the Indian Paint market has substantially grown and caught
the attention of many international players. The growth in the market is driven by
emergence of the middle class in India, growing infrastructure, increase in the
tendency to spend and growing young population inclined towards lavish lifestyle.
The country continues to enjoy a healthy growth rate compared to other economics,
backed by the increasing level of disposable income, and demand from infrastructure,
industrial and automotive sectors. Indian paint industry had two types: Decorative &
Industrial Paints. Decorative paint market has been further segmented into
emulsions, enamel, distemper and cement paints. Similarly, Industrial paint market
is also segmented into automotive coatings, high performance coating, powder
coating and coil coating. The major boost to the growth in the Indian Paint market has
been provided by the decorative paint segment, which is anticipated to grow at a
Compounded Annual Growth Rate (CAGR) of more than 16% during the period
2013-14 to 2015-16. Under the decorative segment, the emulsion paint market has
witnessed a massive demand over the past few years and is expected to drive the
market in the coming years too. There is a phenomenal growth on the housing sector
front with rapid urbanization and availability of easy to secure housing loans, which
have become the prime drivers of growth in the decorative paint segment, which
comprises 70% of the $2 billion Indian Paint Industry. An average increase of growth
of about 10% in the automobile sector contributes to 50% of the revenues in the
industrial paints segment.
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Size of the Industry

Today India has more than 20,000 outlets in operation,

probably the highest for any country.

Geographical

Mumbai, Ahmedabad, Coimbatore, New Delhi, Surat,

Distribution

Chennai, Delhi, Jaipur, Bangalore, Kolkata, Karur,

Triupur, Ludhiana, Bhilwara, Erode, Jodhpur, Rajkot,
Noida, Panipat, Amritsar, Vadodara, Kanpur, Madurai,
Gurgaon, Hyderabad, Navi Mumbai, Thane, Shanghai,
Pune, Karachi, Faridabad, Indore, Ghaziabad, Varanasi,
Faisalabad, Alappuzha.

Output per annum

The high volumes of low cost distempers sold in India,

which amounts to approximately 200,000 tonnes per
annum at an average cost of Rs.35 per kg ($0.88) at the
present rate.

Market Capitalization

The market for paints in India is expected to grow at 1.5

times to 2 times GDP growth rate in the next five years.

Chart No: 11. Basic Information of Paint Industry

Today manufacturers in India hardly face any threat from the foreign players. Most of
them have deals with global players in terms of latest technology and market
accessibility. A large number of Paint outlet or shops have automated/manual dealer
tinting systems. Today India has more than 20,000 outlets in operation, probably the
highest for any country. There are only approximately 7,000 tinting systems in China
for a market two and half times of Indias size. 30% to the paint industry revenue in
India is accumulated from Industrial Paints. The size of the Indian Paint Industry is
around 940 million litres and is valued at approximately $2 billion. The organized
sector comprises 54% of the total volume and 65% of the value. In the last ten years,
the Indian Paint Industry has grown at a compounded annual growth rate (CAGR) of
12-13%.

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Today India is booming in the field of infrastructure and industrial development.

Rapid industrialization and improvements in the infrastructure such as transport,
energy and communication during the last decade gave a further fillip to the growth of
the paint industry. So the demand of paint industry is relatively more. Aided by
Governments liberal policy of technology import, the automotive and consumer
durable segments expanded phenomenally, with a flurry of foreign collaboration.
Increased demand for decorative, protective and functional coatings was a natural fall
out, which brought, in its stride, a host of indigenous development as well as the
injection of new technology. Indian Paint Industry makes great changes in the rapid
industrial development as well as country development. Therefore paint industry is of
crucial importance to India.

5.2DEFINITION OF PAINT:
The paint is defined as a coating material in liquid or solid which when spread on a
surface adheres and hardens forming a film that protect, decorated or add a specific
feature to the surface on which it is deposited. It is most commonly used to protect,
preserve, decorate or add functionality to an object or surface by covering it with a
pigmented coating.

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5.3FUNCTIONS OF PAINT:
Paint is a fluid that dries to form a continuous solid film when spread over a surface
or substrate. Depending on its type and properties, paint can perform mainly two
types of functions. They are as follow:

Protection against oxidation, corrosion and degradation of materials.

Decoration and embellishment of materials and surfaces.

Protection
One major function of the paint is to protect the material or the substrate on which has
been applied, due that once dried and cured, the paint forms an insulating layer
between the external environmental and the material that wants to protect, preventing
the action of external agents such as humidity, salty air, ultraviolet radiation,
chemicals agents, etc. that can induce and cause into the material phenomena such as
oxidation, corrosion or degradation.
Depending on the type of protection that it will use a specific type of paint or other,
protective paints are made with the corrosion inhibiting additives, paints that protect
against sunlight are made with a few amounts of additives that absorb ultraviolet light,
etc.
Decoration
Another major function of paint is to decorate and beautify the material, thanks to the
pigments and additives that include paintings; it is now possible to get a wide range of
colours and decorative effects (chameleon effect, mercury effect) which are enhanced
and do more beautiful the surfaces. Besides these two main functions, the paint can be
designed to have specific functions, such as non-stick paint to facilitate cleaning of
the surfaces, antibacterial paints to prevent the growth of bacteria, antideflagates
paints to extinguish and prevent the action of fire, soundproof paint to absorb noise,
dirt repellent paints, luminescent paint for night signalling, anti-fouling paints for
ships, etc.

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Functions of Paint
i____________________________

a) Decorative

Descriptions
----------------------------------------------------> Paint can be used as a coating to
decorate a surface or substrate. It
has a wide variety of colour,
texture, finishes and gross level.

Decorative paint for aesthetic purpose

b) Protective

Paint can be designed to protect

the surface or substrate against
ultra-violet

rays,

chemicals,

humidity,

corrosion,

algae,

abrasion etc.

Protective paint for fuel tanks

c) Special Purposes

Paint can also be formulated for

specific uses such as luminous
paint that glow in the dark for
emergency

signage,

anti

condensation paint to provide an

insulating

layer

to

minimise

condensation, fire retardant paint

to enhance the fire resistance of
combustible surfaces such as
softboard or hardboard.

> For application of special paints,

I

refer

to

manufacturers

recommendations.
Chart No: 12. Functions of Paint & Descriptions
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In short, the main functions of paint are as follows:

> To protect the surface from weathering effects of the atmosphere and actions by
other liquids, fumes, moisture, temperature, bacteria, fungi, gases etc.
> To provide pleasing, colourful and decorative appearance to the surfaces.
> To prevent decay of wooden members.
> To prevent corrosion of metallic surfaces.
> To provide a smooth surface for easy cleaning.
> Aesthetic appearance provided by the paint colour and sheen (eggshell, satin or
gloss).
> Providing a desired ability of reflection-absorption of heat and light.
> Changing the surface properties: ant-friction, hardness, electrical conductivity.
> Identification of products according to the colour of the paint.

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5.4PA INT SYSTEMS AND COMPONENTS:

A paint system is basically composed of primer/sealer, undercoat and topcoat as
shown in Figure. Depending on the design requirement, texture coating may be
provided. Due to volume constraint, this guidebook will focus on paints that are
commonly used in the local market. The functions of each system component are
illustrated in Table below.

Chart No: 13 Functions of Paint System Components

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System Component

Function

Remarks

Primer

- To improve adhesion.

- Primer should be used

- To protect metal against

to reduce the porosity of

Corrosion.

the surface and to

- To reduce porosity of

provide adequate

receiving substrate so

moisture resistant

as to prevent undue

Capability.

absorption of resin

- Etching Primer should

from subsequent

be used as pre-treatment

Coats of paints.

on non-ferrous surfaces
such as galvanised
metals, aluminium to
ensure good adhesion.

Sealer

- To resist alkali attack - Sealers are applied to

from

cement

based prevent

migration

materials

substances

- To improve adhesion

substrate into later coats

- To
surfaces,

seal

from

of
the

problematic and should

e.g.

resinous be used to reduce the

wood

porosity of the surface and

- To stabilise loose surface to

particles

provide

adequate

moisture

resistant

- To reduce porosity of capability

receiving substrate so as to
prevent undue absorption
of resin from subsequent
coats of paints

Texture (Optional)

- To give a distinct 3- dimensional appearance.

If

applied,

this

is

introduced as the second

coat after application of
sealer/primer.

Commonly

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applied by spray or roller

i

- Textures are available in

multiple
simulate

colours
the

granite,

look

tiles,

to
of
and

wallpaper
- Mock-ups are important
to

understand

the

appearance of the product

Undercoat

- To impart opacity and - Choice of undercoat

film build

should be compatible with

- To level out minor the primer/sealer and the

irregularities and provide finishing coats
uniform texture
- To improve inter-coating
adhesion
Topcoat

- To provide the required

Functions of paint.

- This is the finishing

coat of a paint system
which gives the final
appearance in term

of

colour, gloss or sheen to

the substrate.

Chart No: 14. Functions of Paint System Components

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Thus, Classification of painting products by their functions

o

Paint - coloured non-transparent protective coating.

Varnish - transparent or semi-transparent protective coating. A varnish is

made of binder, solvent and additives. Some varnishes contain small amounts
of pigment.

Enamel - hard protective coating with glossy finish.

Primer - the first coating applied to the surface in order to enhance the
adhesion of the final paint (topcoat) and to seal the substrate surface. Primer
may be formulated to impart additional protection to the substrate (e.g. anti
rust primer for steel substrates).

The paint is composed of different chemicals substances, natural or artificial, which

can be classified into the following basic compounds:

Resins and binders- This is the polymer base of the paint and thus is the basic
element. The binder or resin is the actual film forming component of paint. It
is the only component that must be present in paint.

Pigments - These are solid materials: that provide the tone and colour of the
paints and others like anticorrosion, luminescent, etc. Pigments are granular
solids incorporated in the paint to contribute colour.

Fillers- Set of chemicals materials that contribute and improve the mechanical,
chemical and physical properties of paints

Additives - These are chemicals materials that are added in small amounts,
which are designed to add a specific feature of the paint and improve the
application, examples of additives are wetting agents, film-formation
promoters, levelling agents.

Solvents are chemicals materials that make the paint a liquid material and fluid
with a specific viscosity. The main purpose of the solvent is to adjust the
viscosity of the paint.

Thinners - are chemicals materials that allow changing the viscosity of the
paint according to the conditions land means of application, the main
difference is that the solvents do not dissolve to the paint.

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Hardeners - are chemical compounds that react with the resin, producing the
formation of the polymer and hence jthe solidification of the paint, are paints
which do not require hardener, curing or solidification occurs by the action of
!

humidity, the application of ultraviolet light, etc.

j

Catalyst - are chemical compounds that accelerate the curing or solidification

process of the paints, also called as accelerators or dryers.
i
I

The success of a good paint job lies in respecting and select each of the appropriate
techniques in each of the stages of painting, nothing will serve all effort, time and
i

money invested in a paint application process if the surface preparation not do in

accordance with the requirement to fulfil, due all work is ruined when problems such
as adhesion failure of paint applied on the surface.

!
I

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5.5 CLASSIFICATION OF PAINT:

I

With technological advancements, the traditional classification of paints into either

enamel or emulsion has become misleading. Today, the industry has enamel paints
that can be diluted with water and emulsion paints that have smooth, glossy finishes.
Hence, it becomes essential to identify paint by its resin components to minimise
contusion.
Appendix A shows some examples of paints classified by their resin components and
properties. In general, enamel refers to solvent-based Alkyd resin which is
generally used for wood and metal surfaces. Apart from classifying paints by their
resin components, paints may also be classified in accordance with their curing
mechanism, solvent used, function and market segment as shown in Table.

ts

Chart No: 15. Classification of Paints

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5.6 PROPERTIES OF PAINT:

The properties of paint determine the general quality of the coating and its
workability, ease of application and resistance characteristics. Table itself shows some
basic properties of paints.

111
.,
v- 0

mm

Chart No: 16.Properties of Paints

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5.7 CHALLENGES FACED BY THE INDIAN PAINTS INDUSTRY:

j

Today Indian Paints Industry is facing various challenges. They are as follow:
1) Exterior paint is the fastest growing segment in the Indian paint market.
Advertising, sales promotions, brand equity, a wide range of shades, distribution
strength and efficient working capital management are key success factors in the
exterior paints segment It is a raw material- intensive business with cost of material
accounting for 69 per cent of total expenses and 54 per cent of net sales. Demand for
exterior paints is not price-sensitive and unlike other segments it is not cyclical.
Growth is more than proportionate to the economical growth of India. The estimate is
that an eight to nine per cent growth in India on a long-term basis will result in a 1520 per cent growth in the exterior paints segment.
2) In the past, a critical challenge in the paints industry was the competition from the
unorganised players; who were not liable for excise as well as other taxes. Reduction
of excise duties over the last few years, from 40 per cent to the present level of 12 per
cent, has helped create a level playing field between the unorganised and organised
segments. As the unorganised sector loses its competitive edge, it is also losing
market share to the organised sector players. The customers too are demanding
quality products from well established brands.
3) The increased purchasing power in India is leading to an increase in repainting
activity. The Indian consumer has shifted from lower quality to premium quality
paints. This segment is not too seasonal and 60 per cent of the demand for exterior
paints stems from repainting. Rising aspirations, redevelopment and refurbishment of
homes leads this market to grow consistently. It is a shift in the perception of paints,
having protective qualities that in addition to decorative one have diminished the
impact of seasonality. Paint units have always been a household name for premium
quality paints so low-cost or project quality paints are no longer a challenge.

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4) Due to globalization, large numbers of projects are managed by international

consultants who recommend "paint specifications" of different types meeting
requirements of specific projects. Paint industry has products within several segments
such as zero-VOC waterproof cement paints, premium low-VOC exterior emulsions:
with solar-reflective properties, with quartz aggregates or with silicone which address
the need of different surfaces and project specifications.
5) A11 paints and products have been water-based, free from lead, mercury and
chromium from inception and the current fashionable trend of green paints has always
been part of the companys ethos.
6) Boom in the Indian Housing Sector - The increasing availability & easy finance for
houses, driven by faster growth in the incomes of middle- and higher-income
categories, increasing urbanization, and a shift from semi-permanent to permanent
housing structures, have been driving growth in the exterior paints segment.
7) Strong industrial growth and heavy infrastructure spending, new projects pertaining
to roads, ports and industrial segments is a positive sign encouraging international
brands to step into India. This has further put the industry in the spotlight and
increased consumer awareness towards quality products.
8) The retail segment plays an important part in the exterior paints business. Paint
industry has a well established national distribution chain with other distributors,
dealers and retailers pan-India. Many of these dealers are third generation. To build
such a distribution network would always be a challenge for new entrants and has
been a key competitive strength for paint industry.
9) Distribution reach is important for growth and further more servicing them
consistently and on time will further help speed up the penetration levels. Currently it
main is only timely servicing is the biggest challenge.

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5,8 LIST OF SELECTED PAINT UNITS OF GUJARAT:

Sr.

Company Name

City

No.
1

Indian Paints

Mehsana

Rasna Paints

Mehsana

Vimal Paints

Mehsana

Welcoat Paints

Mehsana

Nippon Paints

Ahmedabad

Esdee Paints

Ahmedabad

Nerolac Paints

Ahmedabad

Asian Paints

Ahmedabad

Berger Paints

Ahmedabad

10

Share willaim Paints

Ahmedabad

11

Aura Paints

Ahmedabad

12

Akzonable Paints

Ahmedabad

13

Rosalkyd Paints

Anand

14

Delight Paints

Anand

15

Bee Pee Coatings

Anand

16

Pacific Paints

Anand

17

Rado Paints

Anand

18

Champion Paints

Anand

19

Moonlight Paints

Anand

20

Tirupati Paints

Anand

21

Packmee Industries

Anand

22

Bharat Paints

Baroda

23

Britiesh Paints

Baroda

24

Snowcem Paints

Baroda

Chart No: 17. List of Selected Paint Units in Gujarat

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