Indian Paint & Coating Association (IPCA) is an
association, which represents both the organized
and unorganized sector in the paint and coating
industry. In 2004, in an attempt to coordinate
industry policy, the association was formed. IPCA
is a voluntary, non-profit trade association
comprising of over 500 paint and coatings
manufacturers, raw materials suppliers and
traders.
Harish Agrawal, President, IPCA spoke to
Madhu Gupta on the evolving scenario across
India's paint and coating industry.
What is the current market size of paint and coating industry of
India? Tell us about the main growth drivers for India's paint and
coating industry?
The market size is around
24,000 crore. Organised sector claims that
it is growing at the rate of 18 to 20 per cent. Overall the industry is
growing at the rate of 10 to 12 per cent. Infrastructure is a major growth
driver. Lot of projects (government & private) is coming up in the
infrastructure sector like road construction, building construction,
metro rail projects etc. Secondly, automobile industry is also
witnessing good growth. Because of infrastructure and automobile
industry there is good growth in industrial finishes and (decorative)
architectural finishes. Value wise, around 68 to 70 per cent of the share
is held by the organized sector and around 32 to 30 per cent are with
the small scale industry.
What are the various challenges facing India's paint and coating
industry? Going forward, tell us about the type of governmental
support expected by the industry?
Now, the market demands innovative products. So, the manufacturers
have to upgrade their technologies. Without up-gradation of
technology, they (large & small-scale players) will not be able to
survive. Across India's paints and coatings industry around 3000
small-scale players are operating and they will grow only with the
assistance of government. Government should offer some assistance
to small-scale industry like in procuring raw materials. Government
should be liberal to the small-scale industry and should provide lot of
facilities to the small-scale industry - only then they will be able to
survive. Basic need is that small-scale players should improve their
volume and also enhance quality.
Globally, dollar prices are up and rupee is going down - so definitely
prices for raw materials will increase. Survival will be difficult. Smallscale
players have to increase their product quality or foreign
companies will come and take over. For survival, they have to improve
the quality which is a difficult situation. This phase will continue for
another six to seven months.
Also, budget proposal is there where-in industry will be proposing
for single point taxation. There are many associations operating in
the country like Indian Paint Association (IPA), Color Society etc. I
personally feel that all these associations/societies should come
together and form a Federation, where-in issues bothering all these
associations/ societies should be discussed with each other, and a
common policy should be devised which will be beneficial for each
other and should be put in front of the government. By forming a
Federation - we should move collectively and put our requirements
/ demands together to the government through the federation.
What are the latest trends in India's paint and coating industry?
In future, all water based paints and coatings are going to come.
Solvent based coatings will go - which will take another four to five
years. Water based coatings are costlier.
India is a country where per capita consumption has increased
from 0.800 gms to 1.2 kg which is sill very low - but cost is a very
important factor in India. If we switch-over to water based coatings
then definitely the cost will increase which people are not ready to
accept - that is a challenge right now. It will take another four to five
years for total conversion from solvent based to water based paints
and coatings. Globally per capita consumption is 15 kg. Earlier, in
India per capita consumption was 0.800 gms and now it has gone
up to 1.2 to 1.4 kg. In coming three years, per capita consumption
will be more than 2 kgs.
If we see population wise, India is the second largest in the world
and that way we are quite good. In Singapore, population is very
less and per capita consumption is around 26 kgs. India will not go
more than 3 to 3.5 kg in next 10 years in per capita consumption.
Comparing population-wise we are quite good.
In the Indian paint and costing industry, now there is lot of awareness
about technology. People understand that technology is the basic
need and they have to improve their quality, so people/manufacturers
are attending the international conferences, appointing technical
people - they are learning a lot, younger generation is going to come
and definitely there will be a change - better quality products will be
seen. Indian manufacturers have got the ability to produce better
quality and they are changing.
What are the export opportunities?
Export opportunities are very less as far as coating is concerned. For
instance, for high performance coating the basic raw material is
imported. And on that various duties like excise duty etc. is being
levied so as a result raw material prices are very high. Right now, there
is possibility for export but even for neighbouring countries chances
are very less. To the neighbouring countries like Nepal, Sri Lanka,
Pakistan 4 to 5 per cent export possibility exists. In future it may
increase but chances are not very much high for exports. India is
importing raw materials from Malaysia, Thailand, Singapore,
European Countries and maximum materials are being imported from
China. In future, import will not reduce because many times raw
materials are not easily available and also raw materials which are
available in India - mostly are not up to the mark.
Tell us about IPCA and its activities?
IPCA was formed in 2003 and the prime motto is innovation; technology
and sustainability. IPCA also spreads education among the small scale
industry so that they will enhance the quality of their products. For the
same, IPCA holds seminars, conduct educational programs etc. Small
scale should be able to improve their technology, through that they will be
able to bring innovative products and through innovative products they will
get sustainability (by having better pricing for their products).
Indian Paint & Coating Association (IPCA) is an amalgam of Paint, Ink
and Powder Coating Manufacturers, Raw Materials Manufacturers,
Machinery Manufacturers and Allied Industries, It has a Pan - India
presence with active Regions in Delhi NCR, Haryana, Greater U.P.,
Western U.P., M.P. & Chhattisgarh, Maharashtra & Gujarat. It has
strength of around 900 plus members and growing.
Its recent tie-up with Tata Steel Ltd. to impart networking knowledge
sharing Training Sessions and problems solving with respect to
galvanized and CRC sheets has set new bench marks for what and
industry body can do and provide for its members.
This kind of core technical input from an industry body has catapulted
IPCA into a different league altogether. IPCA actively liaisons with the
government for favorable policies for its members, it is suitably
represented on various committees like VAT an Excise. It gives regular
proposals during the budget making exercise of the Central
Government in New Delhi.
IPCAis a firm believer in corporate social responsibility and actively plays
its part in promoting green coatings which build a healthy environment.