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Y.H. Gharpure awarded Honorary in recognition of his contributions to the Last year, Mr. Gharpure was awarded The report stated that the entry of cent during FY20-FY24 to 16 percent players, is expected to come online
Fellowship of IIChE Chemical Engineering profession over the ‘Lifetime Achievement Award’ by new players, including JSW Paints, in H1FY25. CareEdge Ratings projects in FY25-FY26, CareEdge said.
Veteran Chemical Engineer and the last seven decades including scruti- the Pune branch of the IIChE. Grasim Industries, and others, has a further reduction to approximately
former Managing Director of Hindustan nising global tenders for technology, disrupted the market. These entrants 14 percent by FY26 due to pricing Decorative paints, which account
Antibiotics Ltd., Mr. Y.H. Gharpure, successfully implementing and com- Mr. Gharpure has authored over 300 have aggressively expanded capacities, pressures and rising competition. for 70-75 percent of total demand, con-
was awarded an Honorary Fellowship missioning several projects, reverse articles, including in Chemical Weekly, dealer networks, and sales teams, tinue to be the primary growth driver,
of IIChE. engineering two imported technologies, and formed two NGOs, viz., Voluntary resulting in heightened promotional The gross margin, however, is fuelled by repainting activities, urbani-
and implementing projects based on Executives Forum of India (VEFI) and activities and advertising expendi- expected to remain stable around 40 sation, and rising disposable incomes.
The honour was presented to him indigenously developed technologies. Technology Transfer Association (TTA). ture. This has pressured incumbents to percent, aided by recent price hikes of Meanwhile, industrial paints, contribut-
respond with their own capital expen- 1.5-2.5 percent to counter rising input ing 25-30 percent of demand, are sup-
GROWTH PLANS diture and marketing investments, it costs, primarily crude oil derivatives. ported by sectors such as automotive,
Kansai Nerolac Paints plans Rs. 98-crore expansion said. Market dynamics oil & gas, and infrastructure.

The report noted that advertise-
The share of organised players
CareEdge
Ratings’s
Associate
at Hosur facility ment and sales promotion expenses are in the paints sector is set to rise to 80 Director Ms. Richa Bagaria noted that
Kansai Nerolac Paints Ltd. (KNPL) The subsidiary of Kansai Paint Co. share in automotive coatings, KNPL con- expected to increase by 100-200 basis percent in the medium term, driven by despite the challenges, the sector is
is planning to invest Rs. 98-crore to Ltd. of Japan foresees strong growth in tinues to expand its customer base across points as a percentage of revenue, fur- massive capacity expansions by both poised to grow at 8-10 percent with a
expand production capacity at its Hosur the Indian paint market, driven by rising industries. It has also ventured into new ther straining operating margins. incumbents and new entrants. somewhat lower operating margin of
factory in Tamil Nadu. industrialisation. It aims to outpace in- applications within automotive coatings, around 14 percent in FY26 as compared
dustry growth rates. According to KNPL, widening its addressable market, it said. Operating margins for the sector Over 1-billion litres of additional to the average of around 18 percent in
Currently, the Hosur unit operates its current production capacities are declined from an average of 18 per- capacity, predominantly from new the last fi ve years.
with an installed capacity of 15,500 insuffi cient to meet projected demand, KNPL has also made signifi cant
tonnes per month (tpm) for paints, var- necessitating the proposed expansion. The inroads into the electric vehicle (EV) seg- DECARBONISATION
nishes, enamels, powders and resin company currently runs eight factories, ment. “In four-wheelers, EV penetration is IOC hoping to get better response for third tender
manufacturing on a two-shift basis. including the one in Hosur. currently 2-3 percent, and in two-wheelers,
Spanning a 54-acre site, the facility it’s around 7-8 percent. While growth is for building green hydrogen facility at Panipat
employs around 700 people. KNPL’s business is split 55:45 bet- gradual, the three-wheeler EV market has
ween decorative and industrial paint seg- surpassed 50 percent penetration. KNPL’s
It is proposing to increase the capa- ments. The industrial segment generates reach in the EV segment is as strong as State-run Indian Oil Corporation In the fi rst two attempts, industry tion facility in the last 15 years. This
city to 28,140-tpm. The expansion is about 70 percent of its revenue from auto- in conventional systems, where we hold (IOC) is expecting to receive more players had accused IOC of skew- facility should have been in continu-
expected to generate job opportunities motive coatings. a high market share,” said Mr. Anuj Jain, than half a dozen bids to build a green ing the tender in favour of GH4India, ous commercial operation for at least
for about 280 people, as per the docu- Managing Director, during the company’s hydrogen plant at its Panipat refi nery an equal joint venture among IOC, one year. In the previous scrapped
ments fi led for environmental clearance. With a dominant 58-60 percent market Q2FY25 earnings call. in Haryana. renewable energy company ReNew and tender, this was 12 years.
engineering major Larsen & Toubro.
MARKET TRENDS IOC is seeking bids for a facility This time IOC has also opened the
with a capacity of 10,000 tonnes per The latest bid saw IOC introduce green hydrogen project to players in
Rising competition hurting margins of Indian paints year of green hydrogen at the Panipat a new technical qualifi cation criterion the SIGHT scheme which could bring
refi nery on a build, own operate wherein, to be eligible, bidders should in some experienced entities.
majors: Report (BOO) basis. The refi ner had to cancel have won the right to set up elec-
two previous tenders as there was little trolyser manufacturing and/or green The lead bidder is also required to
The Indian paints industry, after signifi cantly lower than the 14-15 per- ration can be attributed to price cuts interest from the industry. hydrogen production capacity under meet at least 48% of the fi nancial quali-
witnessing robust growth in FY22 and cent CAGR recorded between FY19 and undertaken by the players to partly pass Mode-1 of the Strategic Interventions fi cation criteria, and up to three other
FY23, is bracing for a challenging land- FY23, CareEdge Ratings said in its study. on softening raw material cost and change The latest tender that was fl oated for Green Hydrogen Transition Pro- consortium members should meet at
scape marked by intensifying competi- in product mix with a growing share of on September 11, 2024 had sought gramme from the ministry of new and least 15%. One of the consortia mem-
tion and margin pressures, according to The decline was attributed to price cuts lower-value products,” the report said. bids by November 11, but the deadline renewable energy. bers should also be registered in India.
a report. with softening raw material costs and an was pushed twice to January 6 on the
increasing share of lower-value products The revenue was further impacted in request of the participating companies. The bidder should have also exe- Interested bidders should also have
Revenue growth for long-established in the sales mix. the fi rst half of FY25 (H1FY25) due to Linde, GH4India, AM Green, Jakson cuted, on a BOO or BOOT (build, operating and maintenance experience
players such as Asian Paints, Berger Paints, stiff competition, general elections, pro- Green, ACME, NTPC Green and own, operate and transfer) basis, a of at least six continuous months dur-
Kansai Nerolac, Akzo Nobel, and Indigo “While the volume growth remained longed monsoon and the continued effect US-based Matheson Tri-Gas are said refi nery, petchem or fertiliser facility ing the past 15 years in a processing
Paints moderated to 4 percent in FY24, high at over 10 percent, the revenue mode- of price cuts, it said. to have put in bids. with a commercial hydrogen produc- unit with hydrogen handling facilities.

148 Chemical Weekly January 21, 2025 Chemical Weekly January 21, 2025 149

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