CHENNAI: Paint industry is hard-hit due to supply chain disruption and raw materials price increase and government policies, Mahesh Anand, President of Nippon Paints India (Decorative) said at an event in the city on Tuesday.
Due to government regulations to use only BIS-certified tins, the prices have gone up by 70% and uncertainties prevail as we wait for 4-5 months to get raw materials from China or Malaysia. Still, currently it's easing up, he said.
"Demand is little subdued and there's no big volume growth. Companies are focusing on economical products and premium segment demand remains muted. Price is paints has been increased over 21% in the last year in four tranches from April, July, September and November." He ruled out price moderation in Rs 70,000 crore worth paint business.
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Mahesh Anand spoke at the launch of its construction chemicals business in the city on Tuesday. It focuses on construction, post construction and maintenance, including concrete admixtures, concrete repair, water proofing, sealants, and adhesives and has 80 products in its portfolio. Pegged as RS 12,500 crore market, the company has acquired and merged more than five companies, including international players in the construction chemicals since pandemic. It aims to be one of the top 3 player in 5 years.
It's a natural transition for us, says Mahesh Anand. The company plans to strengthen its distribution network by adding 2500 more dealers/ distributors in Tamil Nadu and Karnataka, which constitutes over 65% of it's business in the country. The Japanese paint maker is betting big on its distribution network to grow the new vertical.