India's paint industry is showing signs of stronger demand across both urban and rural markets, boosting expectations of healthy volume growth for major manufacturers in FY27 even as companies continue to raise prices to counter higher input costs in an increasingly competitive environment.
Paint producers, which have already implemented several rounds of price hikes due to rising costs of crude oil-linked raw materials, remain cautious about future pricing decisions. Industry players are expected to continue with calibrated increases aimed at protecting margins while minimising the impact on consumer demand.
Raw materials derived from crude oil account for nearly 30-35 per cent of the sector's overall input costs. Essential ingredients such as solvents, resins and binders are directly influenced by global crude prices, leaving the industry vulnerable to geopolitical tensions, currency fluctuations and supply-chain disruptions that can significantly affect cost structures.
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Leading listed companies, including Asian Paints, Kansai Nerolac, Berger Paints and AkzoNobel India, indicated during their latest earnings calls that demand conditions have improved since the second half of FY26. They also expect an extended festive season and favourable monsoon forecasts to provide additional support to growth in the coming months.
Asian Paints Managing Director and CEO Amit Syngle said the company is witnessing encouraging demand trends in both urban and rural markets and remains optimistic about achieving high single-digit volume growth during the current financial year.
"We have started seeing positive signs in April and May, and we believe we should be able to deliver at least high single-digit volume growth," Syngle said. At the same time, he acknowledged that competition remains intense as both established companies and new entrants continue to aggressively pursue market share.
"There is no major change in the competitive landscape. The intensity of competition remains high," he said. To safeguard profitability, paint manufacturers have begun introducing measured price increases. Syngle noted that Asian Paints has already implemented limited price hikes and is continuously evaluating the need for additional increases in response to rising costs.
"We are constantly assessing the situation and deciding the appropriate course of action. Some minimum increases have already been passed on to the market, and depending on how costs evolve, there could be further hikes going forward," he said.
Kansai Nerolac Paints Managing Director Pravin Chaudhari also indicated that persistent inflationary pressures could require additional price revisions. He highlighted concerns stemming from the ongoing West Asia conflict, including disruptions to supply chains, higher crude-linked commodity prices and increased import costs due to the depreciation of the rupee.
Addressing pricing strategies, Chaudhari said, "If inflationary pressures continue, then naturally the price increases already undertaken may need to be followed by further hikes." He added that market conditions have steadily improved since late last year. "What we have clearly observed is a consistent improvement in demand since November, and that trend continues to strengthen," he said.
Berger Paints Managing Director and CEO Abhijit Roy also pointed to the impact of geopolitical tensions in West Asia and volatility in crude-based raw materials. Roy said competition across the industry remains fierce, while fluctuations in crude prices, rupee weakness, geopolitical developments and supply-chain challenges continue to pose significant risks.
To address rising costs, Berger Paints has undertaken multiple rounds of price increases beginning in March. "Even during the first quarter, we have already implemented three rounds of price hikes, and a fourth increase is on the way," Roy said, adding that cumulative price hikes in the decorative paints segment have reached around 11-12 per cent.
JSW Dulux Joint Managing Director and CEO Rajiv Rajgopal said the industry's cost environment changed sharply from March onward after a prolonged period of relatively stable raw material prices. According to him, the company had implemented price increases of nearly 9.7 per cent by mid-May. However, the broader industry may still require an additional 3-4 per cent increase to fully absorb the impact of cost inflation.
"Demand is gradually returning, but crude oil prices and foreign exchange movements remain the two most critical variables for the paint industry and need to be monitored closely," Rajgopal said.Asian Paints, Berger Paints and Kansai Nerolac continue to dominate the Indian paint market, collectively accounting for more than three-fourths of the industry's total share, according to market estimates.
However, competition has intensified significantly over the past five to six years with the entry of several new players. These include Pidilite Industries through Haisha Paints, Grasim Industries with its Birla Opus brand and JSW Paints, all of which have contributed to a more crowded and competitive marketplace.
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