- Paint Makers Pivot to Industrial Coatings Amid Margin Strain

Indian paint companies are rebalancing their growth strategies as crude-linked input costs rise and competition intensifies in decorative paints. The entry of Birla Opus has disrupted the consumer-facing segment, while the West Asia war has squeezed margins. In response, players like JSW Paints and Berger Paints are turning to industrial coatings, where competition is lower and demand visibility stronger, particularly from the emerging electric vehicle (EV) ecosystem. JSW Paints Strategy - Acquired AkzoNobel India in a ₹9,000 crore deal, becoming India’s fourth-largest paint company. - Managing Director Parth Jindal sees industrial coatings as a stronger growth driver than decorative paints. - Acquisition provides global R&D capabilities and a platform to expand in industrial paints. - Dutch parent retains powder coating business and continues as technology supplier. - EV adoption, accelerated by crude price spikes, could boost demand for industrial coatings.

Strategy - CEO Abhijit Roy highlighted focus on EV-driven demand opportunities. - Plans to scale industrial and coatings portfolio in automotive and related domains. - Serves diverse sectors: construction equipment, fans, lighting, glass coatings, and automotive (two-wheelers, tractors, CVs). - Sees industrial coatings as a hedge against margin strain in decorative paints. Sector Context - Decorative paints face dual pressures: - Rising input costs from crude-linked materials and supply chain disruptions. - Intensifying competition following Birla Opus’ entry. - Industrial coatings offer steadier growth, lower competition, and higher margins. Outlook The pivot toward industrial coatings reflects a strategic shift to balance margin pressures and competitive intensity. With EV-driven demand and global R&D backing, companies like JSW and Berger are positioning themselves for longer-term resilience, even as the decorative segment faces near-term headwinds.