Paint makers head south as palettes grow

The walls in homes across the country have changed — irreversibly, it appears. Increasing competition in the paint industry and ever more demanding consumers have combined to breathe life into what used to be monotonous blocks until not so long ago.

Gone are the days when one was compelled to choose from a handful of colour shades.
The options today are in tens of thousands, and counting. In fact, companies such as Nerolac and Asian Paints offer 15,000-20,000 shades each.

Even the ceilings are changing from the traditional white. Many customers insist on testing the colours on a patch of wall before deciding on one. Some want special effects — sponge, comb, spatula, brush, etc.

Others see a shade somewhere and go demand it at the neighbourhood store. And the catch-up game has only begun.  However, paint makers appear game for it. Indeed, they have opened up newer vistas (read niche segments) with eco-friendly paints and special kids’ range, etc.

Interestingly, even as the western and northern markets experiment with newer colours and colour schemes, it is the southern market that has the paint industry’s attention most of all.

Shalimar Paints is setting up a $12 million manufacturing plant at Tamil Nadu that will become functional by early next year and produce 2,000 kilolitres of paint per month. Jotun and Nippon, two new entrants, are also aggressively expanding their presence in the four southern states.

Indeed, AGS Group, which provides paint-dispensing machines and colour-matching tools to most paint manufacturers, sees a shift in industry focus from the West to the South. A company official says most paint makers are focusing on the South and strengthening their dealer networks there.

What gives?
For one, the IT construction boom in Hyderabad and its outskirts has given paint companies ample opportunity to get projects and institutional contracts. In Tamil Nadu, the automotive hub of the country, paint makers are able to land lucrative business deals.

Kerala, with its huge reserves of ‘Gulf money’, is a draw for obvious reasons.
The state, as also the whole region, is known for its preference for flamboyant colours.
But, what draws paint makers is that the state is a stickler for good quality paints, too, the price notwithstanding, says NK Bhatia, former president of the Indian Paint Association and the director of Premium Coatings and Chemicals.

“People of Kerala prefer using first quality plastic emulsions on their walls, which is why most of the paint players are very focused on this region. On the whole, South Indian market has been showing very positive signs in the past three years for the paint industry and is more lucrative than business in West or North,” adds Bhatia.

Sandeep Sarda, executive director and chief executive officer, Shalimar Paints, says the southern market is the fastest growing in the decoratives segment and the customers rank high in aesthetics.

“In Kerala, particularly, people are equally conscious of painting the exterior of their homes as the interiors. Dark colours are no more a taboo in Indian households. The demand, especially from the South, gives us ample opportunity to expand our business here,” adds Sarda.