The domestic paint sector has an estimated size of Rs.500 billion. The sector can be divided into two main segments, decorative paints and industrial paints, where the decorative paint segment accounts for almost 75% of the market.
Asian Paints and Berger Paints are the two dominant players in the Indian decorative paint segment, garnering a market share of 80%.
India's per capita consumption of paints is 4.1 kgs, which is half of the global average of 13-15 kgs per capita consumption. This disparity indicates an immense scope for the domestic paint market to grow.
Apart from this, the rise in disposable income, higher urbanization, a growing rural market, and a shortening of the repainting cycle is the primary demand drivers for the paint industry.
The paint stocks have created tremendous wealth for its investors. Considering oil is the key raw material in the pint manufacturing process, a good time to invest would be when the oil prices are falling. You can access an exhaustive list of the top paint stocks in India on Equitymaster.
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