Large paint makers are resorting to calibrated price hikes to offset the sharp increase in crude oil prices triggered by the ongoing conflict in West Asia. A weakening rupee and intensifying competition in the domestic market have further compounded uncertainty for the industry.
For over five decades, the sector was dominated by the four major players — Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel India — operating in what was largely an oligopolistic market. However, the entry of new players such as Birla Opus, JSW Paints, JK Cement, Pidilite Industries and Astral, coupled with aggressive pricing by Birla Opus, has significantly altered the competitive landscape, pushing the industry towards a far more fragmented and intensely competitive structure.
Pravin Chowdhury, Managing Director, Kansai Nerolac Paints said there was a significant surge in crude oil prices, primarily because of the West Asia crisis in the March quarter and rupee also depreciated sharply.
“The West Asia crisis has created a lot of uncertainty and supply chain disruption. The demand visibility remains more or less a wait and watch situation given the paint price increase on account of steep material inflation and considering the (general) inflationary scenario,” he said in an analyst call.
The company was the first to implement a price increase around March 25 followed by April 10 and 21 and now it will be on May 11. In all, the hike was in high single digits in the decorative segment, he added.
competitive landscape
The recent rise in crude oil prices on the back of raging war in West Asia and subsequent concern over inflation has the margins and overall demand in the domestic markets.
The paints industry was growing in excess of 14 per cent prior to FY14 and slowed down to 10 per cent over FY14-22. However, after FY22, the paint industry industry has CAGR has slipped to mid-single digits.
Manoj Menon, Head of Research, ICICI Securities said the competitive landscape has evolved with the entry and rapid scale-up of Birla Opus. In last two years, Birla Opus has garnered 6 per cent market share, leading to a visible dilution in the dominance of incumbent players.
The combined market share of the Big 4 has declined to 80 per cent, with the balance now split between Birla Opus and a fragmented set of smaller regional and niche players, he said.
The prospects of paint industry depends on the early end to the US war on Iran and crude prices becoming stable again. Though the domestic demand will bounce back, the concern over high inflation still remains.
Published on May 7, 2026