Paint Industry Abandons Price Wars for Strategic Regional Focus
India's vast ₹70,000-crore paint industry is undergoing a dramatic strategic shift. Faced with an escalating and bruising battle for market share, leading and mid-sized paint companies are moving beyond the unsustainable practice of aggressive discounting. Instead, they are now concentrating on fortifying their positions in key geographical strongholds and diversifying their product portfolios to ensure long-term survival and growth.
Regional Dominance Over Pan-India Discounts
The change in tactics is evident across the board. Kansai Nerolac, the country's third-largest paintmaker, is making calculated investments to deepen its presence in markets where it already commands significant scale. The company's Managing Director, Pravin Chaudhari, explicitly stated in an October analyst call that they face 'heavy competition' in the decorative paints segment and will avoid low or zero-profit products.
Echoing this sentiment, Nippon Paint India is doubling down on its dominance in South India. Sharad Malhotra, the company's newly-appointed CEO, confirmed that their strongest brand recall and distribution network is in the southern region, making it their primary battlefield. Simultaneously, Nippon is expanding into adjacencies like sealants and powder coatings to fuel growth.
A Survival Tactic for Smaller Players
Analysts view this regional focus not just as a smart strategy, but as a necessary move for survival. Manoj Menon, Head of Research at ICICI Securities, pointed out that for a company like Nippon, which derives a large share of revenue from Tamil Nadu alone, the impact of competition can be disproportionately high. This makes protecting their core markets an existential challenge.
This 'survival instinct' is most visible in the strategy of Shalimar Paints, one of India's oldest manufacturers. After nearly a decade of losses, the company is attempting a comeback by deliberately avoiding direct competition with giants in metro and tier I markets. Instead, it is focusing on tier II, III, and IV towns, where CEO Kuldip Raina says consumers and dealers are less price-sensitive and competition is less fierce.
New Entrants Reshape the Competitive Landscape
The entire dynamics of the industry have been upended by the entry of deep-pocketed new players. The launch of Birla Opus in 2024 and JSW Paints' acquisition of Akzo Nobel India's paint business in 2025 have permanently raised the competitive intensity. Birla Opus is aggressively targeting the number two position, while JSW aims for number three, forcing established players to rethink their approach.
According to Antu Eapen Thomas, Research Analyst at Geojit Investments Ltd, the current penetration-led pricing strategy is not sustainable due to the capital-intensive nature of the sector. He anticipates competitive pressures will only ease by FY27–28, when Birla Opus is expected to scale back its aggressive rebate offerings.
A Cyclical Recovery on the Horizon
Despite the current turbulence, analysts at ICICI Securities project a rebound for the paint industry this financial year, following two years of muted growth. A report from the firm highlights a two-decade pattern where the sector typically bounces back strongly after consecutive slow years. Geojit's Thomas also expects a degree of volume recovery to materialize in the second half of the current fiscal year, H2FY26.
In the end, the fight for India's paint market is no longer just about the color on the walls. It is a complex battle of regional strength, product diversification, and financial endurance, where the winners will be those who build sustainable moats rather than just offering the lowest price.
