Green makes business sense in coatings industry: Mahesh Anand

Indian paint industry is now very accepting of ‘green’ and environment-friendly paints, such as no odour, low VOC (volatile organic compounds) paints and those that have additional functionalities such as protecting indoor air quality. This is in line with international trends and is lending support to the adage that ‘green makes great business sense.’

This was the central message delivered by Mr. Mahesh Anand, President, Decoratives Business, Nippon Paint (India) Pvt. Ltd., while delivering the ‘3rd Visiting Fellowship Lecture’ organised by Sauradip Chemical Industries Pvt. Ltd., at the Institute of Chemical Technology (ICT), in Mumbai on December 18, 2018. The lecture has been made possible by a donation made by Sauradip Chemicals, a speciality chemicals company, whose founder, Dr. Kishore Shah, is an alumnus of ICT.

Nippon Paints is the fifth largest paint company in India, operating in the decorative, industrial and automotive paints segment. The company has three factories in India: at Taloja (industrial paints), Delhi (auto refinish) and Chennai (decoratives). “Nippon Paints was the first company in India to adopt a ‘go green’ policy thanks to the global DNA of the company, which emphasises sustainable products. It is a pioneering company for having introduced functional products in the Indian market, including paints having anti-viral and antibacterial properties, as well as the first to bring in exclusive stores for selling paints. Every other company followed this trend,” Mr. Anand said.

Nippon Paints India is also the only company in India, according to Mr. Anand, whose manufacturing facility is ‘Green Co’ certified and whose products are ‘Green Pro’ certified by the Confederation of Indian Industry. It is a founding member of the Indian Green Building Council (IGBC), and has reduced its carbon dioxide footprint by 34% between 2012 and 2018.

Novel paints introduced by the parent company in Japan include a paint that contains dried Tatami grass, which has been shown to reduce formaldehyde and humidity levels in rooms, besides adding a unique texture and a scent to the product. The company has also several innovations for ‘upcycling’ used paint cans into useful products that consumers can themselves make with some guidance from the company, simple tools and lots of imagination.

‘70% of India’s infrastructure is yet to happen’

Highlighting some of the trends in the Indian paints & coatings industry, Mr. Anand pointed to the low per capita consumption of paints in India – just 3.3-kg, as compared to a global average of around 12-kg. “The Indian paint industry has typically been growing at 1.8-2.0xGDP, and this trend is expected to continue.”

While the industry has a value share of 3.8% of the global paints & coatings market, it does have a 10% volume share of the global market. “This difference shows that high-end products are not sold in India in the proportion they are sold in other markets,” he added. “70% of India’s infrastructure is yet to happen and this will pose significant growth opportunities.

While demand for enamels which have a 23% share of the Indian market, is expected to remain flat in the near term, demand for interior emulsions (22% share) and exterior emulsions (25% share) are expected to be strong growth drivers. The other major product categories in decoratives are primers (9% share), wood coatings (8%) and miscellaneous products such as putties, thinners, strainers and distempers that together have a 13% volume share.

To address the opportunities, Indian paint companies are ramping up capacity. They are investing in bringing customers to the stores and responding to a trend of ‘Do it For Me’ by offering the service of painting not just a supply of the paint. The industry is also focussed on skilling the applicators.

Pointing to some global trends, Mr. Anand noted that China is discouraging solvent-based paints production by imposing a 4% cess that cannot be passed on to customers and needs to be borne by the company. This was introduced in 2017 and has been a catalyst in accelerating the shift from solvent-based to water-based coating systems.