Intensified Competition in Indian Paint Market Brings a Mixed Outlook for Major Players

In the Indian decorative paints industry, competition has intensified, marked by new entrants adopting aggressive pricing strategies. This scenario is impacting sales realizations and margins for established players like Asian Paints in FY25, though a modest growth is still anticipated for the current fiscal year.

Urban demand in the decorative paints market has been subdued, with many consumers opting for more cost-effective options. Despite rural demand showing resilience, overall market performance has been flat, influenced by weak consumption trends. Aggressive pricing and competition have particularly affected major players such as Asian Paints, Kansai Nerolac, and Berger Paints.

Despite these challenges, the major players in the industry remain optimistic, forecasting a rebound in FY26 driven by factors such as urbanization, infrastructure development, and favorable macroeconomic conditions. Paint companies anticipate growth supported by higher disposable incomes and government initiatives like 'Housing for All' and the 'Smart Cities Mission'.