Despite rupee's decline, paint industry expects robust growth

The Indian paint industry, which remains bullish in its outlook with an anticipated 15 per cent growth in the current fiscal on the back of a good monsoon and lower taxes, is weighing the impact of the depreciating rupee on its raw material cost, stakeholders say. "Outlook for the industry is positive and we are expecting around 15 per cent growth in sales this year as the demand is expected to pick up on the back of reduction in the GST (Goods and Services Tax) rate, a good monsoon resulting in a higher rural incomes and because of the approaching festive season," Indian Paint Association President and Berger Paints India's Managing Director and CEO Abhijit Roy told media. According to him, the demand for the paint industry usually picks up after the monsoon from September onwards and the 10 per cent reduction in GST from the earlier 28 per cent, as announced in July, would not only lead to higher volumes but also open the scope for premiumisation.