(MENAFN- KNN India)
Kolkata, Jan 11 (KNN)
The Indian paint industry is grappling with sluggish growth due to a slowdown in consumption demand, industry leaders reported at the Indian Paint conference in Kolkata on Friday.
Several key players in the sector acknowledged the challenges faced by the industry, which has seen muted growth in recent months.
Abhijit Roy, Managing Director and CEO of Berger Paints India, explained that the past three quarters have been difficult, not only for the paint industry but for the broader FMCG sector, especially in discretionary categories like paints.
“Food inflation has been very high, and individuals are prioritising basic needs,” Roy said, attributing the slowdown to rising living costs.
He further outlined three significant hurdles: a 5 per cent price cut taken last year, the rise of new entrants capturing market share, and a broader slowdown in discretionary spending.
Roy expressed hope that the upcoming Union Budget could stimulate demand, particularly through tax breaks for the lower and middle classes.
Anuj Jain, Managing Director and CEO of Kansai Nerolac Paints, echoed Roy's concerns, highlighting that industry growth in the first half of the year was a modest 3-4 per cent.
"The consumption slowdown is impacting paints as well," Jain noted, underscoring the challenging environment for the sector.
Sundaresan A S, Joint Managing Director and CEO of JSW Paints, also acknowledged the demand slump, but pointed to a potential rural-led recovery.
Jain shared optimism that the rural market could show better growth in the coming quarters, despite urban demand remaining slow.
Government schemes aimed at boosting rural demand are already showing positive effects, but the broader fiscal environment, including constraints on capital expenditure, remains a concern for paint consumption.
Despite the current challenges, industry leaders remain optimistic about the future. Capacity expansion continues, with Roy indicating that the industry is positioning itself for stronger demand in the long term. The slow growth is seen as temporary, with an eventual recovery expected.
(KNN Bureau)
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