Paints industry comprises companies that manufacture paints, varnishes, enamels, coating, solvents, binders, shellacs, water repellant coatings, and lacquers. The paint manufacturing industry worldwide is growing and the emerging markets seem promising and have a better and greater potential in terms of revenue and expansion. The paints industry has emerged as one of the pioneering industry in architectural, property and real estate space for the integral and important part it plays in finishing up of a product. The paint industry is predicted to grow at approximately 13% annually over the five year period and financial year 2012 was a challenging year for the industry due to subdued demand across key sectors and rising costs and inflation. The unorganized sector controls approximately 35% of the paint industry market and the organized sector accounts for the remaining percentage.

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The demand in paints industry is categorized and differentiated by two main sectors, decorative and industrial. Decorative sector's main main revenue generation includes the revenue collected from supply of paints for exterior and interior wall paints, wood finishes, enamel and ancillary products such as primers and putties, Decorative paints account for more than 78% approximately of overall paint market in India. One such player is Asian Paints who has been in this segment with strong foothold. Basically, decorative painting's demand comes from household, architectural and other display purposes. In India especially, the painting industry flourishes during the festive season and it is considered the most important and significant time for paint industries to gain as many customers as possible. The other sector is Industrial, in which there are three main segments that the industry caters to, namely, automotive, coating, powder coating and protective coating. Nerolac is the market leader in India in this segment and this industrial paints segment is more technology intensive than the decorative segment.

2 . Paints Industry Current Trends

The paints industry's demand is mainly driven by the industrial production and the housing market, which is decorative segment. The margin and profitability of individual companies has depended upon technological expertise and efficient production, be it large or small companies, they have competed successfully by offering wide varieties, innovative and creative designs, different textures and service. The paints industry is highly concentrated as the top 50 companies account for over 80% of the market share.

According to Freedonia, the global paints and coating demand is expected to witness over 5% of growth to reach the production and supply of 46 metric tons by the end of 2015 with the revenue generated worth $142 billion. At the same time, market expansion will be fueled by the increased activity pf global building construction, and especially residential construction in particular which witnesses strong recover in Europe and North America. Along with that, there is the increased manufacturing activity that has equally lead to greater demand for coatings and different types of coating for various purposes and it has increased the production of paints for automotive and other industrial maintenance applications as well.

3 . Major Paint Manufacturers

Major companies in the paints industry include Axalta Coating Systems, Benjamin Moore, PPG, RPM International, Sherwin-Williams, Valspar, Akzo Nobel, Nippon Paint, Hempel A/S, Asian Paints, Nerolac Paints, Berger Paints, Shalimar Paints, Snowcem Paints, and BASF.