Expected increase in production capacity of paints by 2027

· Crisil report released

Crisil has announced that the production capacity of paints in the country is expected to increase by 2027. It is estimated that approximately 7.8 billion liters of paints will be produced annually between the financial years 2024 and 2027. They have also indicated investments of around Rs. 19 crore for this purpose. The entry of new players into this sector has created a competitive environment that has been significant in the market. As a result, many companies are affected by profits. Currently, the production capacity of paints in the current financial year is estimated to increase significantly by 2.4 billion liters, and newcomers in the industry are expected to produce another 1.3 billion liters of paint.

The decorative segment alone has an increasing demand for a high quality of the total production of paints by 75 to 80 percent. Overall, production volume is expected to increase by 10 to 15 percent, according to the Crisil report. At the same time, profits have been limited to between 15 and 17 percent due to high competition, as indicated. Overall, this financial year’s income is expected to increase by 7 to 10 percent.