This is a serious concern since the growth of the paint industry depends on the growth of other key sectors of the economy. Successive governments have treated paints as a luxury item. This shows in the high levels of excise duty, sales tax and octroi levied on paints by central, state and local governments. Import duties on several raw materials have recently been increased. This has led to an increase in the prices of several types of paints.
Paints play an important role in protecting structures and substrates.
The government should recognise this. A reduction in duties and taxes can significantly influence demand in a category that is price-sensitive. On capital expenditure We are implementing I2 supply chain management solution software worth Rs9 crore. We also have plans to increase installation of Colourworld machines from the current 350 to a thousand by the year-end. Each machine costs Rs6 lakh and is leased out to dealers.