Leading paint manufacturing company Akzo Nobel India said the paints and coatings industry in the country is estimated be of the size of ₹1 lakh-crore in the next five years.
In its latest annual report, the company said the present size of the paints and coatings industry is around ₹62,000 crore.
The company said the paints and coatings industry encompasses a diverse range of products, with the architectural segment dominating the sector, accounting for 69 per cent on volume basis, and industrial sector the remaining 31 per cent.
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The company said in the fiscal 2022-23, the paints and coatings industry experienced a favourable development in the form of softening of raw materials prices from their previous highs.
Raw materials account for 55 per cent to 60 per cent of the total input costs, while price corrections in crude and other essential components resulted in improved margins for the industry, the company said.
It also said the paints and coatings industry is intricately connected to the growth of the economy, which is influenced by factors like income levels and infrastructure development.
The company said while the industry faces potential risks stemming from fluctuating crude prices, macro-economic environment and inflationary pressures, the overall outlook remains promising.
This optimism is fuelled by India's projected medium growth rate of six to seven per cent, the company noted.
Akzo Nobel said the key focus areas of the company would be on margin management by maintaining the present levels and expanding it, adjusting the cost base to align with market realities, and reducing working capital to enhance cash flows.