The former accounts for 70 per cent of the country's total paints production, while the rest 30 per cent is accounted for by the industrial paints segment. The industry is characterized by low margins and high asset turnover. Strong brand image, wide range of shades, well spread distribution networks and efficient working capital management are key success factors in the decorative paints segment. A strong distribution network acts as an entry barrier. In the industrial paints segment, technology competence, product range and the ability to service customer requirements are vital.
Technological strength is an entry barrier in the industrial segment.
Decorative paints are used to paint the interiors and exteriors of buildings. Owing to a large proportion of retail sales, the demand for decorative paints is price sensitive. Decorative paints can be further classified into three segments depending upon the price range. These are the premium, the medium and the popular segments. The organized sector has 60 per cent of the market share while the unorganized sector accounts for 40 per cent of the market share.