From Duopoly to Dogfight: Will Asian Paints and Berger Keep Their Sheen ?
Is India's Paints Duopoly Cracking? New Players Shake Up the Industry
Over the past 2 years (since September 2021) Berger Paints and Asian Paints have effectively made none to negative returns for their shareholders even though their earnings has consistently grown
Current Paints Industry Landscape
Market size and growth: The Indian paints & coatings industry is estimated to be worth around INR 70,000 crore (USD 8.64 billion) and is projected to grow at a CAGR of 9.38% between 2024 and 2029. This indicates a promising future for the industry.
Major players: While Asian Paints and Berger Paints still hold strong market shares (Asian Paints holding around 35% and Berger Paints around 15%), new entrants like Grasim Industries, Pidilite, and JSW are making their presence felt.
Segments: The industry is broadly divided into two segments: decorative/architectural paints (accounting for roughly 70% of the market) and industrial paints (30%). The decorative segment caters to residential, commercial, and institutional constructions, along with repainting and renovation projects.
Let’s explore the entire crisis and how this moat has been disappearing for a while now.