Painted Into a Corner: Price Wars and Downtrading Shake Up India’s Decorative Paint Market

India’s decorative paints industry, once a bastion of steady growth and brand loyalty, is undergoing a dramatic transformation. With new entrants slashing prices and consumers trading down to more affordable options, legacy giants like Asian Paints, Berger Paints, and Kansai Nerolac are feeling the heat. The shift is not just cyclical—it signals a structural change in consumer behavior and competitive dynamics.

Here’s a detailed look at what’s driving the disruption and how the industry is responding.

Key Developments Reshaping the Market

- New players, including Birla Opus, have entered the market with aggressive pricing and discounting strategies  
- Urban demand has weakened, with consumers delaying repainting cycles and opting for budget-friendly alternatives  
- Despite a 2.5 percent rise in volumes, Asian Paints reported a 5.7 percent decline in value for its decorative paints segment in FY25  
- Rural demand remained relatively stable but was insufficient to offset urban softness  
- The industry anticipates only modest growth in FY26, despite favorable macroeconomic conditions  

The Rise of Birla Opus and Competitive Pressures

- Birla Opus, backed by the Aditya Birla Group, has captured a 6.8 percent market share within a year of launch  
- The company has invested ₹9,000 crore and aims to build a 50,000-dealer network by March 2026  
- Its strategy includes targeting Tier 2 and Tier 3 cities, leveraging existing infrastructure, and offering deep discounts  
- This has forced incumbents to defend market share at the cost of margins  

Consumer Behavior: Trading Down, Not Out

- Even within premium categories, buyers are opting for lower-priced variants  
- Discretionary spending has slowed, extending repainting cycles and reducing demand for high-end finishes  
- The shift toward high-volume, low-value products like putty and texture coatings is reshaping product portfolios  

Industry Response and Outlook

- Asian Paints and Berger Paints are focusing on innovation, distribution expansion, and cost optimization  
- Kansai Nerolac is banking on industrial paints and automotive coatings to offset decorative segment pressures  
- Analysts expect continued margin pressure in the short term, with recovery hinging on rural demand and commodity price stability  
- The industry is also watching for consolidation opportunities and potential exits, such as Akzo Nobel’s rumored India divestment  

As India’s ₹70,000 crore paint industry navigates this turbulent phase, the winners will be those who can balance affordability with brand equity, and agility with scale. The color of success, it seems, is no longer just glossy—it’s strategic.

Sources: Economic Times, Fortune India, Telangana NavaNirmana Sena, MSN India, Asian Paints AGM Filing June 2025, InCred Equities Report on Birla Opus

 

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