India’s ₹70,000-crore paints industry is living through one of its most bruising competitive phases in decades. What began as a race led by discounts and price undercutting has now evolved into a far more strategic contest—one defined by regional dominance, sharper product portfolios, and entry into new adjacent categories.
Across the value chain, companies are recalibrating: mid-sized players are reinforcing their geographic strongholds, smaller challengers are widening their product scope, and giant incumbents are relying on deep market insights to protect their turf. Beneath this surface, analysts say, lies a survival battle intensified by powerful new entrants like Birla Opus and JSW Paints.
A Market Turning Away From Discounts
The earlier phase of the paint-price war was clear-cut: offer heavy discounts, quickly win dealers, and expand distribution. But as margins thinned and profitability came under threat, firms realized the strategy couldn’t sustain the financial demands of this capital-intensive business.
Kansai Nerolac, India’s third-largest paintmaker, has been candid about this shift. Managing director Pravin Chaudhari acknowledged the “heavy competition” in decorative paints, signalling that the company would no longer chase volumes at zero profitability. Instead, Kansai is doubling down on calculated investments in markets where it already enjoys scale—an approach now becoming common across mid-sized companies.
Similarly, Nippon Paints India is leaning into the region it knows best: the South. With one of the strongest brand recalls in Tamil Nadu and neighbouring states, its new CEO Sharad Malhotra has made it clear that the company will deepen its southern roots while expanding into lucrative adjacencies like sealants, films, powder coatings, and other categories beyond traditional decorative paints.
Regional Strength as a Competitive Moat
India’s paint market is not monolithic. Consumer preferences, dealer loyalties, construction cycles, and brand relationships vary significantly across regions. Market leader Asian Paints has long leveraged this diversity to its advantage by tailoring products to suit regional tastes and needs.
But for mid-sized and smaller players, regional economics have turned into existential high ground.
Industry experts say:
- In Southern India, Nippon may be more vulnerable than Asian Paints because a disproportionately large share of its revenues comes from Tamil Nadu.
- Companies are increasingly realizing that competing in markets outside their strongholds requires overwhelming capital and distribution muscle—not easy when confronted with deep-pocketed entrants like Birla Opus.
Analyst Manoj Menon from ICICI Securities summarizes it bluntly: focusing on strong markets is no longer optional—it’s a matter of survival.
Shalimar Paints: A Comeback Built on Smaller Cities
One of India’s oldest paint manufacturers, Shalimar Paints, is attempting a quiet but determined turnaround after years of losses. Its strategy is refreshingly distinct: stay away from metros and Tier-I cities where discounts and dealer incentives dictate customer decisions.
Instead, Shalimar is deepening its presence in Tier II, III, and IV towns—markets that are underpenetrated but full of untapped potential. The company expects to return to EBITDA profitability this fiscal and aims for net profit by FY27.
In an overcrowded battleground, this rural-urban tier segmentation may well offer its best shot at revival.
Why Smaller Players Are Playing Defense
Analysts broadly agree that the sector’s pecking order remains:
Asian Paints → Berger Paints → Kansai Nerolac → JSW Paints (with Akzo Nobel) → Indigo Paints → Birla Opus,
with the remaining 4–5% shared by Nippon, Shalimar, and other niche brands.
But the arrival of Birla Opus and the scale ambitions of JSW Paints have permanently raised the competitive bar. Birla Opus is eyeing the No. 2 spot, while JSW wants to claim No. 3 after acquiring Akzo Nobel India’s paint business in 2025.
With such aggressive goals, discount-led penetration battles are unlikely to disappear soon. Yet analysts warn that this pricing strategy is unsustainable over time. The real question becomes: how long can each company withstand losses?
For mid-sized paintmakers, consolidation is not just probable—it’s inevitable. Some may sell out, others may not survive, and only a few will successfully defend their regional bastions.
Survival Strategies in a New Market Reality
The choices companies are making today reflect both strategic discipline and a measure of compulsion:
- Strengthen where you’re already strong
Companies like Kansai and Nippon are fortifying markets where dealer networks and brand equity already exist. - Expand beyond paints
Nippon is exploring sealants, films, and more; others are evaluating adjacencies with similar application or retail channels. - Avoid unprofitable product categories
Kansai’s decision to skip low-profit segments marks a shift from volume-driven to margin-conscious competition. - Stay realistic about market-share limits
Analysts note that no smaller player can currently claim the ability to challenge leaders in major urban markets.
In short, aggression is now more selective and far more calculated.
The New Entrants: Turning the Heat Up
Birla Opus, supported by the Aditya Birla Group’s deep pockets, has no intention of slowing down. Analysts expect the company to double down on its market-share ambitions. JSW Paints, energized by its acquisition of Akzo Nobel India’s paint business, is equally committed to gaining ground in the decorative segment.
This new reality has forced traditional players to rethink their growth models. Berger Paints has openly stated it is willing to prioritize market share over margins—if competition demands it. JSW’s leadership has similarly signalled an all-out competitive stance.
The result: a sector where rivalry is not merely alive—it is sharpening.
Forecast: A Recovery Amid the Turbulence
Despite the disruption, analysts expect a cyclical recovery. According to ICICI Securities, the industry is likely to rebound this financial year after two muted years—consistent with its historic pattern of bouncing back after downturns.
Geojit’s analysts expect volume recovery to pick up meaningfully in the second half of FY26.
But one thing is clear: the nature of competition in the paints sector has changed permanently.
Conclusion: A Sector Reinventing Itself Under Pressure
India’s paints market is in the throes of its most transformative era. Discounting alone cannot win the race anymore. Regional specialization, diversification, and strategic discipline have become critical survival tools.
- Mid-sized players are retrenching into strongholds.
- Smaller players are carving out niches in underpenetrated markets.
- New giants like Birla Opus and JSW Paints are rewriting the rules.
- Market leaders are doubling down on brand-led, region-specific strategies.
The battle is far from over—but its contours are clearer than ever. The companies that understand their strengths, respect their limitations, and innovate in adjacent spaces will shape the next chapter of India’s paint industry.
Feel free to share your experiences and insights in the comments below. Let’s continue the conversation and grow together as a community of traders and analysts.
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Disclaimer
This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.