Paints & coatings have constantly witnessed change to keep up with the industry demands. In an interview, X Arokianathan, Managing Director, Vitech Enviro Systems Pvt Ltd with Chemical Today Magazine talks about this transition and various new technologies that the industry will witness in the future.
By Shivani Mody
With the advent of the new generation automobile industry in late 70’s, the Surface Coating Industry started taking shape with new technologies in paint applications and paints to meet the specific requirements of the automobile industry. To cater to this segment all suppliers and vendors had to comply with standard procedures of metal pre-treatment and coatings for meeting the stringent specifications, which led to the proliferation of paint shop equipment manufacturers to meet the demand. Indigenous technology providers were few in number and imported equipments were the norm.
This nascent industry has evolved over the last two decades with indigenous design of the equipment’s saving an enormous amount of Foreign Exchange. The imported machines were not designed to cater to the local tropical climate and also their prohibitive costs boosted the design and manufacture of paint shop equipments locally. A handful of home-grown manufacturers have now blossomed into multimillion dollar industry. The market has seen tremendous potential not only in the Automobile sector but also other industrial products such as Electrical Panels, Architectural products, Appliances, Machineries, Furniture’s, etc.
Indian paint story.
The Indian paint market is expected to reach Rs 70,875 crore by 2019-20 from around Rs 40,300 crore in 2014-15, the paint industry's apex body projected.
The decorative paint market is expected to witness CAGR of 12.7 per cent and the industrial paint market CAGR of 9.5 per cent, according to Indian Paint Association (IPA)’s to be launched report on the Indian Paint Market – “Size & Future of coating industry” compiled by Nielsen Corporation. The split of the Decorative paint market to industrial market is around 75:25.
Decorative paint market size in the country was Rs 30,385 crore and the Industrial Paint Rs 9,915 crore in FY 2014-15, as per IPA.
The industry had grown at a CAGR of 12.9 per cent from 2011-12 to 2014-15 in terms of value, and that for FY 2014-15, the per capita consumption of paint in India was estimated at 3.34 kg the lowest compared to other countries.
During 2015-16, the overall production of paints in India was estimated to be 4.25 million tonnes, registering a five per cent growth over the previous year. In value terms, the paint industry grew by approx. 8 per cent to Rs. 43,500 crores of which the decorative paints share was 74 per cent and the balance being industrial.
The global paints and coatings market, according to P&S Market Research, is expected to increase from $128,228.5 million in 2014, and reach up to $173,048.2 million by 2020, with a CAGR of 5.2 percent during 2015-2020. In terms of volume, the global paints and coatings market is expected to increase from 37,273.7 million tonnes in 2014, to 46,697.4 million tonnes, by 2020.
A dab of powder.
The paint industry largely dependent on petroleum derivatives had a hit when the crude prices shot through the roof in the 80’s. Revolutionary powder paints with its superior corrosion resistant characteristics and low volatile emissions became a preferred choice of coating for several products. Powder Coating equipment were largely imported at a very high cost. Thanks to the innovative entrepreneurs who indigenized the Powder applicators and brought the prices to affordable levels expanding the markets and facilitated the mushrooming of small applicators for job works and industrial production lines.
Powder Coatings has been the preferred choice of all appliances and vehicle parts specially those needing high corrosion resistances.
According to a new report published by Allied Market Research, titled, “World Powder Coatings Market – Opportunities and Forecasts, 2014–2022,” the powder coatings market is expected to generate $12,332 million by 2022. Powder coating in the appliances application segment occupied the major volume share in 2015 and is expected to maintain its lead throughout the analysis period. According to Allied Market Research analysts, the demand for powder coatings has increased owing to growing technological advancements and increasing demand from applications, namely, architectural; appliances; automotive; furniture; agriculture, construction, and earthmoving equipment (ACE) and general industrial. This trend is expected to continue as it is a volatile organic compound (VOC) and solvent-free. Strict environmental regulations also boost the growth of this market. The market has witnessed moderate growth during the past few years and is expected to grow at a CAGR of 6.3 percent, in terms of volume, during the analysis period.
Significant drivers of the market include increasing adoption of powder coatings over liquid coatings, supporting environmental regulations, increasing demand for appliances, booming construction industry and rapid economic growth in emerging countries. However, difficulty in the application of thin coats is expected to impede this growth, as per some analysts.
The Paint shop Equipment industry has seen proportionate growth with the paint industry. There are no figures available as such on this industry
Based on my personal experience I have seen a rapid rise in the number of entrepreneurs in the past two decades catering to the small and mid segment of the industry. Moreover the strict environmental regulations, automation, low operating cost, and quick implementation of projects has restricted the business to a few players in the Indian market.
Journey of the company and the road ahead.
Our company Vitech Enviro Systems Pvt Ltd was incorporated in 1993 when the industry was in a very nascent stage. Powder Coatings Technology was very new and plant and machinery were imported at very high cost. Vitech grabbed the opportunity and engineered the design to suit our requirements meeting global standards and made the equipment affordable. The company is engaged in the design, manufacture, supply and installation of the full range of Paintshop equipment such as Paint Booths, Ovens, Phosphating lines, Spray Equipment, Conveyor and Automation Systems on turnkey basis.
We had several challenging assignments in our business past two decades.
Some of the noteworthy challenges faced by us is detailed below:
Painting of commercial vehicles for a vendor of a leading Truck manufacturing company to meet the quick turnaround time A large automobile light manufacturing company wanted us to substitute a plant similar to their principal in Japan and was done successfully A high-end Clean painting facility for Auto parts such as Mirrors, Lights etc. Facility for painting Large structures such as Windmill Towers, Transformers, Machinery etc Automatic Painting lines for painting of auto parts such as Wheels, Wheel Covers, pressed metal components etc
Having established a proven record, the company has been enjoying the confidence of several multinationals establishing their manufacturing units in the south for their Paintshop requirements. We are now offering our services in the western and northern region of the country. The company is poised for growth in the coming years and the potential for the industry manufacturing complete Surface Coating plants is promising.
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