What is the export potential of the Indian paint industry?
AD: It is not very competitive to export or import paints, except at the high end, as it’s a freight-intensive product category. Average realisation of paints is around Rs 90 per litre and, hence, the cost of the product does not make it competitive for exports. Moreover, in the architectural coatings segment, you have to give the consumers their choice of shades in their choice of pack for the product they want, which further makes it difficult to export or import the product. It is for this reason that Asian Paints, which now operates in 22 countries across the world, has manufacturing facilities in each of these countries. HM: The scope is restricted to some commodity items only as branded products will require brand-building efforts, local promotion, distribution set-up etc. In industrial too, it will be restricted as companies work on supply-demand concept outside, which can pose logistic problems. The scope, therefore, will be limited for paints. What are the constraints that the
