India Primer Market

GROWING DEMAND FROM CONSTRUCTION INDUSTRY IN INDIA

In India, the Construction industry encompasses two main segments: real estate and urban development. The Real estate segment encompasses various types of properties, including residential, office, retail, hotels, and leisure parks, among others. The rapid urbanization and increasing disposable income of the Indian population have led to a surge in construction activities across residential, commercial, and industrial sectors. This surge in construction activities has created a substantial demand for coatings, including primers, which play a crucial role in preparing surfaces for painting or other protective coatings.

According to the data released by Ministry of Statistics and Programme Implementation, the construction sector witnessed a growth of over 13% in July-September 2023 compared to the previous year. Moreover, according to the Invest India, the construction industry in India accounts for 9% of the total GDP of the country and is anticipated to become the 3rd largest construction market in the world by 2025.

One of the primary drivers of the demand for primers in the construction sector is the need for surface preparation. Before applying the final coat of paint or protective coating, surfaces need to be properly prepared to ensure good adhesion and durability. Primers serve as the foundation for the coating system, providing a smooth and uniform surface for subsequent layers. They help seal porous surfaces, prevent moisture penetration, and improve the adhesion of the final coat. With the construction industry booming in India, the demand for primers as a crucial step in surface preparation has seen a significant rise.

According to the National Investment Promotion & Facilitation Agency, India received USD 32 million FDI inflow in construction infrastructure activities from April 2000 to September 2023 making it the 6th largest FDI recipient sector of India. Thus, the advancing foreign direct investments in the construction sector owing to increasing construction activities in the country is anticipated to drive the demand for primers used in construction activities.

GROWTH IN INFRASTRUCTURE DEVELOPMENT FUELS PRIMER MARKET

The Indian government's focus on infrastructure development, including roads, railways, airports, and urban projects, has fueled the demand for high-quality primers to protect and enhance the longevity of these structures. The robust infrastructure sector provides a strong foundation for the growth of the primer market.

The infrastructure sector in India has been driven by government initiatives such as "housing for all" and "smart city plans." These initiatives aim to build affordable housing and develop infrastructure in urban areas, leading to a surge in construction activities. As more buildings and infrastructure projects come up, the demand for primers increases proportionally.

Primers are extensively used in the construction of residential, commercial, and industrial buildings, as well as in infrastructure projects such as bridges and highways.  It provides a smooth and uniform surface for applying final coat of paint or protective coating to ensure good durability and adhesion, making it ideal for roadways and highways. For instance, In June 2022, the Minister of Road Transport and Highways, opened 15 national highway projects worth INR 13,585 crores (US$1.7 billion) in Patna and Hajipur, Bihar.

Moreover, The budget 2023-24 is complemented with the continuation of the 50-year interest-free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of INR 1.3 lakh crore (US$ 16 billion). Thus, growing infrastructural development in India will further drive the demand for primers used in these activities.

India Primer Market is characterized by a high level of competition, with many players emerging for market share. The top 10 companies in the market account for a significant market share of India Primer Market. The competitive landscape of India Primer Market is dynamic, with companies constantly innovating and expanding their product offerings. Despite the challenges, there are several factors that are driving growth in the Primer Market. These include a growing construction activity in India and rising focus on infrastructure maintenance.

The India Primer Market is expected to witness significant growth in the coming years, owing to an increasing shift towards environmentally friendly products.

The key players in the India Primer Market include Nippon Paint (India) Private Limited, Asian Paints, AkzoNobel India Ltd, Kansai Nerolac Paints Limited, Surfa Coats, Jotun, Berger Paints India Limited, Indigo Paints Ltd, Shalimar Paint, and MRF Corp Ltd. These companies compete based on product quality, innovation, price, and market share. Companies also engage in various strategic initiatives, such as mergers and acquisitions, new product launches, partnerships, joint ventures, and expansions, to enhance their market position and expand their product portfolio. Companies are also focusing on developing new and innovative products that meet the specific needs of their customers.

Companies will need to continue to innovate and expand their product offerings to remain competitive.

NIPPON PAINT (INDIA) PRIVATE LIMITED: Nippon Paint, a company with more than 140 years of experience in the paint industry, is headquartered in Japan. One of the world's top paint manufacturers and the largest paint manufacturer in Asia. Nippon Paint produces high-quality paints and coats for the industrial, automotive, and decorative sectors over time, Nippon Paint has refined its products by adopting the most up-to-date paint technologies and prioritizing innovation and environmental sustainability. Its focus is on creating innovative paint solutions that not only enhance the customer experience but also help protect the planet.

Over the past decade, Nippon Paint has been a widely recognized brand in India. Besides various finishing materials for interior, exterior, and branded purposes, It also offers a range of technical specialty products.

Asian Paints: Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai, Maharashtra, India. It operates in 16 countries globally and is among the largest paint companies in India.Through its unique business structure and effective marketing tactics, the company has achieved great success. The company is engaged in the business of manufacturing, selling, and distributing, coatings, paints, and products related to bath fittings, home decor, and providing related services. Asian Paints manufactures a wide range of paints for industrial and decorative use and offers waterproofing, Wall Coverings, adhesives, and services under its portfolio.

The company is ranked 8th among the top coating companies in the world and 2nd in Asia. Besides Asian Paints, the group operates around the world through its subsidiaries - Asian Paints Berger, SCIB Paints, Apco Coatings, Kadisco Asian Paints Asian Paints Causeway and Taubmans. It provides various services that include painting solution, wood solution, interior design solution, waterproofing solutions, and modular kitchens.