Paint companies expect festive boost as costs, competition rise: Can incumbents protect growth?

Leading Indian paint manufacturers like Asian Paints, Berger, Kansai Nerolac, and JSW Dulux expect robust festive season demand, driven by volume growth and price hikes amid intense competition and rising costs.

Written by FE Business

September 6, 2026 21:13 IST

India’s leading paint manufacturers expect demand to remain healthy through the festive season, with companies banking on volume growth and recent price hikes to lift revenues even as rising input costs and intense competition remain key concerns. Asian Paints, Berger Paints, Kansai Nerolac and JSW Dulux have indicated that demand from housing, infrastructure and automobiles remains supportive, according to PTI. However, volatility in crude oil and other petroleum-linked raw materials, along with a weaker rupee and geopolitical uncertainty, could keep costs elevated. The outlook comes as competition in India’s paint market has intensified following the expansion of newer players, including Grasim Industries’ Birla Opus and JSW Paints. Asian Paints targets 8-10% volume growth Asian Paints expects volume growth of around 8-10% in FY27, with Managing Director and CEO Amit Syngle indicating that the upcoming festive season should support demand. “We are entering a festive quarter where the month of September becomes good enough from some festive sales,” Syngle said, according to PTI. He added that the company expects to remain within the 8-10% volume-growth range over the year. The country’s largest paint maker reported 9% volume growth in its domestic decorative business during the June quarter. Consolidated net sales rose 17.9% year-on-year to Rs 10,521.4 crore, while profit attributable to owners increased 40% to Rs 1,539.3 crore, according to the company’s results. Demand in metros and larger urban markets remained softer than in smaller towns during the quarter, although government-led business-to-business spending provided support in larger cities. Competition, meanwhile, remains high across price categories. Syngle said the intensity was not restricted to a handful of companies or to the lower end of the market. “The competitive environment continues not only from one player or two players, but across all players,” he said, adding that the pressure was likely to continue. Berger, Kansai Nerolac push through price hikes Berger Paints expects double-digit revenue growth to continue during FY27, helped by price increases. Managing Director and CEO Abhijit Roy expects second-quarter volume growth of around 7.5-8%, compared with 8.5% in the June quarter, according to PTI. Price increases are expected to provide an additional lift to value growth. Roy described the competitive environment as “intense” and “challenging”. Kansai Nerolac is also raising prices as it seeks to offset higher costs. Managing Director Pravin Chaudhari said the company expects an additional price impact of around 3% in decorative paints during the second quarter, while industrial paint prices could rise another 3-5%. This follows an increase of roughly 5% in the first quarter. Chaudhari flagged geopolitical conflicts, crude oil prices, supply-chain disruptions, rupee depreciation and higher import costs among the major risks facing the industry. Demand from infrastructure, construction and automobiles, however, continues to provide support. JSW Dulux sees strong festive season JSW Dulux, formerly Akzo Nobel India, is targeting double-digit volume growth in FY27 after reporting 25% volume growth in the June quarter. Revenue during the quarter rose 18.8% to Rs 965 crore. Joint Managing Director and CEO Rajiv Rajgopal told PTI that demand remained “fairly strong”, including during July, and expects the momentum to extend into the festive season. “We believe that the festive demand is going to be continuously strong. We see no issue there,” he said. The stronger demand outlook comes against a considerably more competitive backdrop. Grasim’s Birla Opus has expanded rapidly since entering decorative paints, while JSW has also strengthened its position in the industry. For established manufacturers, the immediate challenge will therefore be to balance volume growth and market share with the need to pass on higher raw-material costs without losing customers in an increasingly crowded market.

Asian Paints, Berger Paints, Kansai Nerolac and JSW Dulux have indicated that demand from housing, infrastructure and automobiles remains supportive, according to PTI. However, volatility in crude oil and other petroleum-linked raw materials, along with a weaker rupee and geopolitical uncertainty, could keep costs elevated.

The outlook comes as competition in India’s paint market has intensified following the expansion of newer players, including Grasim Industries’ Birla Opus and JSW Paints.

Asian Paints targets 8-10% volume growth

Asian Paints expects volume growth of around 8-10% in FY27, with Managing Director and CEO Amit Syngle indicating that the upcoming festive season should support demand.

“We are entering a festive quarter where the month of September becomes good enough from some festive sales,” Syngle said, according to PTI. He added that the company expects to remain within the 8-10% volume-growth range over the year.

The country’s largest paint maker reported 9% volume growth in its domestic decorative business during the June quarter. Consolidated net sales rose 17.9% year-on-year to Rs 10,521.4 crore, while profit attributable to owners increased 40% to Rs 1,539.3 crore, according to the company’s results.

Demand in metros and larger urban markets remained softer than in smaller towns during the quarter, although government-led business-to-business spending provided support in larger cities.

Competition, meanwhile, remains high across price categories. Syngle said the intensity was not restricted to a handful of companies or to the lower end of the market.

“The competitive environment continues not only from one player or two players, but across all players,” he said, adding that the pressure was likely to continue.

Berger, Kansai Nerolac push through price hikes

Berger Paints expects double-digit revenue growth to continue during FY27, helped by price increases.

Managing Director and CEO Abhijit Roy expects second-quarter volume growth of around 7.5-8%, compared with 8.5% in the June quarter, according to PTI. Price increases are expected to provide an additional lift to value growth. Roy described the competitive environment as “intense” and “challenging”.

Kansai Nerolac is also raising prices as it seeks to offset higher costs. Managing Director Pravin Chaudhari said the company expects an additional price impact of around 3% in decorative paints during the second quarter, while industrial paint prices could rise another 3-5%. This follows an increase of roughly 5% in the first quarter.

Chaudhari flagged geopolitical conflicts, crude oil prices, supply-chain disruptions, rupee depreciation and higher import costs among the major risks facing the industry. Demand from infrastructure, construction and automobiles, however, continues to provide support.

JSW Dulux sees strong festive season

JSW Dulux, formerly Akzo Nobel India, is targeting double-digit volume growth in FY27 after reporting 25% volume growth in the June quarter. Revenue during the quarter rose 18.8% to Rs 965 crore.

Joint Managing Director and CEO Rajiv Rajgopal told PTI that demand remained “fairly strong”, including during July, and expects the momentum to extend into the festive season.

“We believe that the festive demand is going to be continuously strong. We see no issue there,” he said.

The stronger demand outlook comes against a considerably more competitive backdrop. Grasim’s Birla Opus has expanded rapidly since entering decorative paints, while JSW has also strengthened its position in the industry.

For established manufacturers, the immediate challenge will therefore be to balance volume growth and market share with the need to pass on higher raw-material costs without losing customers in an increasingly crowded market.

This article was first uploaded on September six, twenty twenty-six, at thirteen minutes past nine in the night.