Manank Gosalia @ IMAP India, just wrapped up an insightful visit to PaintIndia ’24 exhibition last week, featuring a diverse array of Paint, pigments, adhesives, and Chemical distribution companies 🎨
Some key insights he gathered:
“𝐄𝐮𝐫𝐨𝐩𝐞+1” 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 : We have all heard of China+1 strategy, however, we are also increasingly seeing Spec Chem manufacturing shifting from Europe (esp. West Europe) to India. Along with competitive pricing, it is India’s scalability that positions us strongly over Vietnam & Philippines.
Major MNC specialty chemical distributors like IMCD Group, DKSH, and Connell Caldic, alongside prominent Indian players such as CJS Specialty Chemicals Private Limited (C J Shah Group) & Vimal Intertrade, are making significant strides into the Indian market. Meanwhile, MSME Indian distribution firms are capitalizing on their local presence and robust client relationships for sustainable operations. Overall, reflecting a growing market size!
India boasts a long tail of mid-market players that supply and export raw materials such as resins, additives, and pigments to global markets, generating annual revenues ranging from INR 1000-2500 million. Sustainability and organic products are emerging as pivotal themes, likely to capture a significant market share.
Construction chemicals is the fastest growing sector (CAGR at 16%) within the adhesives / sealants space. Particularly, the tile adhesives & repairing chemical products being of keen interest to large players.
Additional trends in India’s pigments, coatings, & paints sector include heightened focus on eco-friendly solutions, innovations in nano-coatings, & increased investments in R&D for high-performance coatings.
Exciting times for the $10bn Paints & Coating industry! 🚀 Let’s paint the future with innovation and sustainability 🌟
IMAP India believes this growing industry would need capital, either from private equity or public markets. Further, we also see mid-market players with focus on single geography/single product players consolidating with larger players with pan India distribution. Our services are designed to cater such strategic and financial needs. Looking forward to collaborating with industry players in redefining possibilities in their journey for business growth and financial goals.
