India’s leading paint manufacturers are entering the festive season with optimism as demand from housing, infrastructure, renovation, and automotive segments is expected to remain strong. However, the industry is also facing significant challenges, including rising raw material costs, geopolitical uncertainties, and intense competition from new market entrants. According to a recent Financial Express report, major players such as Asian Paints, Berger Paints, Kansai Nerolac, and JSW Dulux are preparing for a busy festive period while balancing profitability and market share concerns.
Festive Season Expected to Drive Demand
The festive period is traditionally one of the strongest sales seasons for the paint industry as consumers invest in home renovations, repainting projects, and property upgrades. Industry leaders believe this trend will continue during FY27, supported by steady demand from residential construction and infrastructure development. Paint companies are also expecting support from the automotive sector, which remains an important demand driver for industrial coatings.
Asian Paints Targets Strong Growth
Asian Paints expects volume growth of around 8–10% during FY27, with festive demand likely to contribute significantly to sales. The company reported a 9% increase in domestic decorative paint volumes during the first quarter, while consolidated net sales rose 17.9% year-on-year to ₹10,521.4 crore. Profit attributable to owners of the company surged 40% to ₹1,539.3 crore. According to the company, demand in metro markets remained relatively subdued compared to smaller towns, although government-led projects helped support business activity.
Berger Paints Sees Double-Digit Revenue Growth
Berger Paints also remains confident about growth prospects. Managing Director and CEO Abhijit Roy said the company expects volume growth of around 7.5–8% in the second quarter after recording 8.5% growth in the June quarter. Berger is also counting on recent price increases to support revenue growth during the remainder of the financial year.
Kansai Nerolac Responds to Cost Pressures
Kansai Nerolac, meanwhile, continues to face pressure from rising input costs. The company expects decorative paint prices to rise by another 3% during the second quarter, while industrial paint prices could increase by 3–5%. These hikes come after a roughly 5% price increase implemented during the first quarter. The company cited geopolitical uncertainties, volatile crude oil prices, supply chain disruptions, rupee depreciation, and higher import costs as major challenges affecting the sector.
JSW Dulux Continues Strong Momentum
JSW Dulux, formerly Akzo Nobel India, reported one of the strongest performances among major players. The company delivered 25% volume growth in the first quarter, while revenue increased 18.8% to ₹965 crore. Joint Managing Director and CEO Rajiv Rajgopal said demand remained strong through July and is expected to stay healthy during the festive season, helping the company target double-digit volume growth for FY27.
Rising Input Costs Remain a Key Concern
One of the biggest challenges facing paint manufacturers is the increase in input costs. Raw materials used in paint production are heavily linked to crude oil derivatives. Volatile crude oil prices, rupee depreciation, and geopolitical tensions have increased cost pressures across the industry. Companies are using a combination of price hikes and operational efficiencies to protect margins while trying to maintain competitiveness.
Competition Intensifies with New Entrants
The Indian paint industry has become increasingly competitive with the entry and expansion of major players such as Birla Opus from Grasim Industries and the growing presence of JSW Paints. These companies are investing aggressively in manufacturing, distribution, and branding, creating additional pressure on established paint manufacturers. Incumbent players are now focused on protecting market share while continuing to grow volumes and profitability.
Industry Outlook
Despite rising costs and fierce competition, paint companies remain optimistic about the months ahead. Strong festive demand, housing activity, infrastructure spending, and growth in automotive coatings are expected to support sales. The key challenge for industry leaders will be balancing growth ambitions with profitability while navigating a more crowded marketplace. As competition intensifies, innovation, distribution strength, and brand loyalty are expected to play a crucial role in determining which companies emerge stronger in FY27.
FAQs
1. Why are paint companies expecting higher sales during the festive season?
Paint companies expect festive demand to boost repainting, renovation, and home improvement activities across India.
2. What are the major challenges facing the paint industry currently?
The industry is dealing with rising raw material costs, crude oil volatility, and increasing competitive pressure.
3. Which paint companies are expected to benefit from festive demand?
Asian Paints, Berger Paints, Kansai Nerolac, and JSW Dulux are among the companies expecting stronger sales.
4. How are companies responding to rising input costs?
Many paint manufacturers are implementing selective price hikes and focusing on operational efficiencies to protect margins.
5. What is driving competition in the Indian paint market?
The entry of new players such as Birla Opus and aggressive expansion by existing brands are making the market more competitive.
