/INS. Akzo Nobel India, a paint manufacturing company, reported a positive trend in the paints and coatings industry during fiscal 2022-23, driven by a decline in raw material prices from previous highs. In its latest annual report, the company projected that the paints and coatings industry in the country is set to reach Rs. one lakh-crore in the next five years, with the current size estimated at around Rs. 62,000 crore.

The industry comprises a diverse range of products, with the architectural segment dominating with a 69 percent share on a volume basis, while the industrial sector accounts for the remaining 31 percent. The fiscal year 2022-23 witnessed favorable developments as crude and essential component prices softened, leading to improved margins for the industry, as raw materials make up 55 to 60 percent of the total input costs.

Despite potential risks related to fluctuating crude prices, the macro-economic environment, and inflationary pressures, the overall outlook remains promising.

Akzo Nobel outlined key focus areas for the company, including margin management by maintaining and expanding present levels, aligning the cost base with market realities, and reducing working capital to enhance cash flows.