World's Top ten Paints Companies 2011 Annual Report

Published WPCIA January 4, 2012 Washington Sluggish economic environment, the global coatings market in 2011 still reached $ 106.7 billion, a number of reasons may be attributed to this growth, including increased demand for industrial and building up and developing the automotive industry. U.S. and European markets are also expected to mature in the next few years, an increase due to increase technical and product development, the unique formula and a favorable regulatory environment. Paint industry in most parts of the world can be called a mature industry, its growth depends on many factors, the level of economic activity, such as and construction (the main users of paints and coatings) state. Developing economies of the industrial growth is the main driver of growth in the coatings industry. Availability of cheap labor and abundant resources of the entire Asia Pacific region and Latin America and the production of these companies set up business premises. However, it is undeniable that continued demand from developed countries to help paint the overall market expansion. U.S. and European markets are also expected to mature in the next few years, an increase due to increase technical and product development, the unique formula and a favorable regulatory environment, look at the year 2011 the global coatings market, global industry analysts said, North America accounted for 20% of the global coatings sales in the United States alone accounted for 17% of the world, but paint production in the Asia-Pacific is considered to be the source of growth, accounting for 44% of the world. With the coatings market in North America and Western Europe more or less similar rate year on year in, OEM and industrial coatings industry will continue to work in a difficult environment. However, these industries by focusing on value added, technology and environment-friendly features in these stagnant market growth to be optimistic. Sales in 2011 the global coating

Region Output (Million tons) Scale (%) Output value (Billion) Scale (%)

Asia-Pacific Europe 1557.6 44% $394.79 37% 849.6 24% $320.1 30%

North Latin America America 601.8 17% $213.4 20% 318.6 9% $74.69 7%

Other 212.4 6% $64.02 6%

Total 3540 Million tons 1067 Billion

Paint the future is likely to focus on the development of new coating systems, allowing effective use of new materials. Research and development (R & D) is the next frontier, As the world's first revolutionary elastic touch interior wall paint consists of diamond coatings company successfully developed, will bring huge impact to the traditional wallpaper industry. Complete OEM and industrial coatings industry, mainly in design, color and styling for special attention. Manufacturers are more and more development will be different from competitors, creating niche products for customer confidence in paint products. Nanotechnology is not yet fully explored many of the paint manufacturer. This technology has a lot of commitment and a variety of reasons has increasingly become a focus of attention. From the high-growth markets including China, India, Indonesia and other leaders of the progress of the Asia-Pacific region's largest regional market stands tall. Europe and the United

Paint industry growth may double in next two years

Nitin Madkaikar | Mumbai | May. 08, 2012, 03:19 PM IST The Indian paint industry volume has been consistently growing at over 15 per cent per annum for some years now, strongly supported by favourable monsoons and robust industrial growth especially in the automotive sector. In 2010-11, the growth in turnover significantly outpaced volume growth as large price increases had to be effected into during the year. Decorative paints - including interior and exterior wall finishes, enamels, wood finishes and ancillary products constitute 70 per cent of the paint market in India while the balance belongs to industrial paints - comprising automotive and industrial, protective, powder, coil and marine coatings.

Although 2010-11 was good for the paint industry, sharp increases in raw material prices was one of the key concerns for the industry posing significant challenges throughout the year. The recovery of the global economy leading to a revival of demand especially in countries like India, China and the USA, coupled with the rise in crude prices and shortage of key raw materials led to a steady increase in prices across all categories of raw materials. The potential for the Indian paint industry is huge given the comparison in terms per capita consumption. India is still low at 0.50 kg against 15 kg in the USA and 6.4 kg in China. With large number of residential and commercial projects underway in most cities, the outlook for the Indian paint industry appears brighter. It may jump from its current growth rate of 15% to 20-25% in the next two years. However, raw material cost remain under control and the industry launch innovative products that suite every pocket all seasons. Revenues of top five paint companies in the organized sector aggregated Rs 11,000 crore, up 19 per cent from previous year while profits increased by a mere 7 per cent to Rs 1,140 crore. They make up more than 80% sales of the organized

market. The market share of the organized sector is continuously improving as consumer preference is shifting towards better products offered by the leading brands. Established foreign companies have entered the Indian market by acquiring existing Indian companies. Kansai Paints of Japan entered the Indian market by acquiring Nerolac, while Akzo Nobel, the worlds largest paint company, entered the Indian market by acquiring ICI Paints (now Akzo Nobel India.)

India's largest and fastest growing paint company, Asian Paints achieved net sales of Rs 6,322 crore in 2010-11, which grew ahead of volume growth. However, profit grew marginally to Rs 775 crore, owing to increased cost which dented profitability. The emulsions segment grew much faster than the other categories. During the year, the company launched a number of new products including water based wood finishes in North India, new textured finishes for the exteriors Duracast Pebbletex and Crosstex, which received good response from builders/ contractors for large projects. The company continued to expand its dealer network across all parts of the country. The expansion of its Colourworld network continued unabated with more than 18,000 dealers covered under the network. Considerable investments were made in upgrading over 3000 retail outlets with the overall objective of improving the ambience, providing better service and more information to consumers. After commissioning of the Rohtak Plant in April 2010, the total installed paints capacity stood at to 600,000 KL. The synthetic resins and polymer capacity was augmented by 50,000 tonne in 2010-11. It has plans to increase the capacity of Rohtak plant to 200,000 kilo litre per annum by fourth quarter of 2011-12. Construction had also commenced at Khandala (in Maharashtra) for the seventh decorative paints plant with an initial capacity of 300,000 kilo litre per annum entailing an investment of around Rs 1,000 crore. The plant will be commissioned sometime around the last quarter of 2012-13.