AKZO NOBEL INDIA LTD. AN ATTRACTIVE TARGET FOR ACQUISITION BY ASIAN PAINTS

Abstract

The Indian Paints and Coatings industry is valued at $3.5 billion in terms of sales. Volume output of the industry is estimated to be 2 million metric tons. India's per capita consumption is estimated to be 1.5 Kg much lower than its global and Asian counterparts. The industry is expected to grow at 15% CAGR. Indian paint industry growth is found correlated with GDP of the country and grows on an average.he Indian paint and coatings industry is riding high on the growth in the Indian automobile industry, new construction in the housing segment and improving infrastructure throughout the country. Thirty percent of the paint business is comprised of new construction projects. GDP growth projections of six to 6.5% in the current year mean a growth of nine to ten percent in Indian paint business. The growth will be 12-13% in the industrial segment and eight to nine percent for decorative paint.