For the Indian coating industry, 2025 was a mixed bag. After years of calm and status quo, the industry’s equilibrium was disturbed by the entry of a few deep-pocketed domestic entrants and the acquisition of AkzoNobel’s business by one of these newcomers. Coatings World looks at the performance and major happenings in the Indian coating industry in the year gone by, in this feature.

Slowing Growth

2025 was marked with muted growth for the Indian coating industry, which faced multiple headwinds, leading to slower growth in the architectural segment. Robust growth in the automotive sub-segment was not sufficient to elevate the numbers for the overall coating industry.  Almost all the major paint majors reported modest growth numbers in their successive quarterly financial results.

The extended monsoon season, which impeded construction activities, had an adverse impact on the demand in the architectural coating sub-segment, which accounts for nearly 70% of the overall coating market.

Preliminary automotive sales numbers suggest that the automotive industry registered a growth of 6.2% in the year gone by, providing automotive coating suppliers in the country much-needed relief.

“The first quarter of the current financial year (2025-26) saw sluggish growth and further erosion of pricing power amid intensifying competition,” Anuj Sethi, senior director of credit rating agency Crisil Ratings, says. “During the last financial year (2024-25), volume rose 8-9% but revenue fell as aggressive price cuts, rebates and discounts erased volume gains.

“The trend is expected to continue in this financial year, compounded by weak urban demand, decline in decorative paints consumption, slowing housing activity and tepid automotive sales hitting industrial paints,” Sethi adds. “Volume growth is expected to halve to 4-5%, and with realizations under pressure, sector revenues will remain subdued.”

A senior executive from the sales division of Berger Paints, India’s second-largest coating producer, told CW, “The financial year 2024-25 proved to be one of the most challenging years for the Indian coating industry in nearly three decades. Increased competition from the entry of a few large-sized producers coincided with lower discretionary spending from consumers during the year, as a result, demand and margins suffered.”

On the positive side, there was a significant reduction in the input/raw material cost, as the annual average price of crude oil during 2025 was $69/barrel according to the US Energy Information Administration, the lowest since 2020, even when adjusting for inflation.

End of the Big Four Club?

Dominated by four large-scale producers – Asian Paints, Berger Paints, AkzoNobel, and Kansai Nerolac _ until the start of the current decade, the Indian coating industry is slowly witnessing the emergence of new producers, who are scaling up their operations by organic and inorganic growth and increasing their market share in the architectural and industrial segments.

Birla Opus, JSW Paints, and Pidilite Industries are some of the new entrants in the Indian coating industry during the last few years. All of these companies are subsidiary companies of large business conglomerates with deep financial pockets, established distribution networks, and familiarity with wholesale and retail business.

Competitive realignment of the industry in the current year is expected to intensify as current market leaders will do their utmost to defend their share, while new entrants will attempt to gain market share at the expense of these established companies. The recent acquisition of AkzoNobel India will further reshape the market dynamics. All these factors are expected to keep the prices of coating products quite competitive at the expense of profitability for the major producers.

AkzoNobel India’s Acquisition By JSW Paints

The most notable event in the Indian coating industry in 2025 was JSW Paints’ acquisition of a majority stake (60.76%) in AkzoNobel India. After this acquisition, JSW Paints has become the fourth largest player in the decorative paints segment and the second largest player in the industrial paints segment in India.

JSW Paints now has access to Dulux, one of the most recognized decorative coating brands, which has an established presence in the premium decorative paints segment in India. The acquisition would also enable JSWPL to access AkzoNobel’s technologies within industrial segments such as vehicle refinishes, and marine coatings.

Commenting on the acquisition, Parth Jindal, managing director of JSW Paints, says, “Paints and coatings is one of India’s fastest growing sectors and JSW Paints is amongst the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints and coatings like Dulux, International and Sikkens.”

PPG Asian Paint JV Extension

US coating major PPG extended its joint venture agreement in India with Asian Paints for a period of 15 years (2026-2041) to continue catering to the country’s industrial, protective, marine, packaging, automotive and powder coatings sub-segments.

“We are pleased to announce the renewal of our joint venture with Asian Paints, which is a testament to the past success and strong growth potential in this key market,” says Tim Knavish, PPG chairman and CEO. “This decades-long relationship is a key success factor for our business in India, and we look forward to serving customers in this rapidly growing region.”

The partnership was established in 1997 with the formation of a 50-50 joint venture, PPG Asian Paints Private Ltd., to cater to the automotive, refinish, marine and consumer packaging markets. It was expanded in 2012 with the formation of a separate 50-50 joint venture, Asian Paints PPG Private Ltd., to include the protective and powder coatings market.

Goods & Service Tax (GST) Reductions

Effective September 2025, the Indian government implemented significant goods and service taxes (GST) reductions on a number of products, which have a direct and indirect impact on the demand of paint and coating products.  While the government has not reduced the GST rate on paints, it has done so on a host of other consumer products.

A reduction in GST rate on cement, marble, and ceramic tiles is expected to boost demand for housing, which will lead to higher consumption of architectural coating products in the current year.  The biggest beneficiary has been the automotive coatings, as the government has reduced the GST on most of the small automobiles, leading to a quantum jump in sales in the last quarter of 2025, leading to a major increase in consumption in the sub-segment.