Kansai Paint Targets India's No. 2 Market Position, Industrial Coatings Aim for Top Sales

Recently, Kansai Paint Co., Ltd. (Kansai Paint) disclosed its strategic briefing for India (Kansai Nerolac). Kansai Paint stated that the group's mission is to develop sustainable coatings and promote them worldwide. To achieve this mission, the company's Indian operations aim to become the No. 2 player in the Indian paint market.

Consulting firm Orr & Boss previously released a report stating that India is the largest market in South Asia, accounting for more than 80% of the region's paint industry. It is expected that the Indian paint market will reach a value of 11.2 billion USD in 2023, with an expected value of 16 billion USD by 2028, reflecting a CAGR growth rate of 6.75% in output and 8.25% in value. Decorative coatings have always been the pillar of India's paint industry, accounting for 77% of the market share; the demand for industrial coatings accounts for only 23% of the total Indian paint market.

Currently, major players in the Indian paint market include Asian Paints, Berger Paints, AkzoNobel, Kansai Paint, Nippon Paint, AkzoNobel, Jotun, JSW, Grasim Group, Indigo Paints, Shalimar Paints, among others. In terms of 2023 revenue, Asian Paints earned 4.149 billion USD, Berger Paints earned 1.3487 billion USD (approximately 9.572 billion CNY), Kansai Nerolac earned 945.2 million USD, and AkzoNobel India earned 908.6 million USD.

According to financial reports, Kansai Paint's total sales in 2023 amounted to 562.277 billion yen (approximately 3.879 billion USD), with sales in India amounting to 136.648 billion yen. The briefing shows that Kansai Paint's sales in India accounted for 24.3% of the group's total revenue in FY 2023. As for revenue distribution across business segments in India, decorative coatings accounted for approximately 55%, automotive coatings accounted for around 32%, and industrial coatings accounted for about 13%.

Kansai Paint's sales revenue in India from 2019 to 2023 were as follows: 82 billion yen in 2019, 73 billion yen in 2020, 97 billion yen in 2021, 128 billion yen in 2022, and 137 billion yen in 2023, with a compound annual growth rate (CAGR) of 10.6%. EBITDA was 12 billion yen in 2019, 12 billion yen in 2020, 10 billion yen in 2021, 14 billion yen in 2022, and 18 billion yen in 2023. The CAGR of the Indian paint market from 2019 to 2023 was 10.4%, compared to a 3.7% CAGR for the global paint market.

Kansai Paint stated that, from a long-term perspective (until 2030), the Indian region is expected to become the largest part of the Kansai Paint Group, with a sales revenue CAGR of 10% and an EBITDA margin of around 18%. In the short term (3 years), the company plans to establish three core business pillars, with a sales revenue CAGR of 9% and an EBITDA margin of 14%-15%.

Kansai Paint’s expectations for the Indian submarket include: establishing leadership under the new CEO of the Kansai Paint Group; maintaining its No. 1 position in the automotive coatings market; becoming No. 1 in industrial coatings; and creating a unique growth model to enhance and expand the profitability of decorative coatings. According to data, Kansai’s powder coatings hold the largest market share in India, while general industrial coatings and automotive refinish coatings are in the 4th position in the Indian market.