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REVIEW OF LITERATURE
2.1 Introduction
Indian paint industry has grown by leaps and bounds over last 15
years. The per capita consumption of paint still is one of the lowest. This
means there is a big scope for the industry to grow further. This is one
industry that has successfully developed the large small sector together.
This is so because higher and lower segments of buyers are growing
rapidly. The specifications of the large, specialized users are stringent
and cannot be matched small scale sector that will have to remain out of
the corporate business. There is a huge market of domestic, house hold
paints competing with lime and cements paints that cannot be tapped by
the large manufacturers due to their high over heads. The difference
cannot be matched by their high purchasing power. Industrial experts do
not see a possibility of complete elimination of the small scale sector
form the Indian scene. In fact we have not seen any small scale paint
industry closing down in last several years. Everyone is recording a
healthy growth in volume as well as value terms. The richness of the
small scale is amply evident in the annual general meetings of the
members of Indian Small Scale Paint Association. This means, the small
scale industry is doing well and would continue to do well. One of the
major reasons is low fixed capital employed for manufacture of paints.
The working capital requirements are very huge. This is now easily
available from banks and the turnover of the industry is growing very
rapidly. According to Mishra (2002)28 Indian customers look for the
fresh solutions to their problems and in addition with better value for
their money. This persuades the paint industries to introduce products of
some value with the lower cost. Some new types of paints launched by
the companies to attract more customers are; washable odorless interior
paints, water based enamels, and anti- bacterial paints. Apart from these,
companies have even launched paints with long life guarantee.
Report on Indian Paint Industry (2010)39 it has revealed that the growth
of the domestic paint industry is attributed to the boom in the housing
sector and the strong growth in the automobile sector. Around 70per cent
of the domestic paint industry revenues come from the decorative
segment, whereas the industrial segment constitutes around 30 per cent.
In 2005, the manufacturing sector has shown good activity with new
projects in roads, ports and industrial segments. The Indian paint
industry has a huge potential, as the per capita consumption of paint in
India is 800-900 grams compared to 15-25 kg in the developed countries.
2.2 Conclusion