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Paint industry looks at 10%-plus growth in sales in the current fiscal

“Since the reduced GST rate will push up demand, we expect a 10-15% growth in sales this fiscal,” said Mr Mahesh Anand, vice president, Indian Paint Association.

, ET Bureau|
Updated: Jul 24, 2018, 04.20 PM IST
In 2017-18, the paint industry expanded at around nine per cent to about Rs 52,000 crore.
With GST rate coming down from 28% to 18%, the Indian paint industry is looking at 10%-plus growth in sales in the current fiscal.

“Since the reduced GST rate will push up demand, we expect a 10-15% growth in sales this fiscal,” said Mr Mahesh Anand, vice president, Indian Paint Association, at the 55th annual general meeting held in Kolkata on Tuesday.

“The benefits of lower tax rates should entirely be passed on to consumers, but the prices of raw materials and other factors are also important,” he said.

Mr Anand said the Indian paint industry had been adversely affected in June and July 2017 due to reduction in off take by dealers on account of uncertainties and lack of familiarity in GST implementation.

“Dealers in Tier II and Tier III cities had initiated adoption of digital payment during the period. More importantly the rate of GST levied on paints, i.e. 28 per cent had also put the industry in a challenging situation,” he added.

According to him, the real estate sector, the largest employer after agriculture, is expected to touch $180 billion by 2020. “Commercial, retail and hospitality real estate are growing significantly. The housing sector is likely to contribute around 11 percent to the Indian GDP by 2020,” Mr Anand said.

“Government policies towards housing for all have given a huge boost to this sector. New housing launches in the top 7 cities of India increased approximately at the rate of 27% on year on year basis during January to March 2018. Similarly the demand for commercial and office space has gone up by approximately 23% on a year-on-year basis during the same period. Therefore, it is expected that the housing sector would generate enough opportunities for the growth of the decorative paint business,” he said.

Mr Yatish Kumar, CMD of Braithwaite & Co, called for deeper synergies between the paint industry and the potential buyers, including the Railways. “With high-speed rail and monorail coming up, a lot of opportunities are awaiting the paint industry,” he said.

Mr V S Ram, past president, IPA and CEO, Paints and Coatings Skill Council, underscored the need for demonstrating the industry’s conviction in skill development. “A skilled painter is an essential part of the product’s performance and success. We need to work towards the future when it is mandated to employ only certified painters,” Mr Ram said.
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