Shalimar Paints Targets Rural India for Growth Amid Rising Incomes

The paint industry in India is booming as the demand for rural consumption is surging along with rising disposable income. Realizing the Promise, Established Paint Brand Shalimar Paints has started to focus on rural domestic needs to tap into the Growth potential, Kuldip Raina, Director of Shalimar Paints.

On the changing market dynamics, he pointed out that rural India has shown a better growth trend than urban in subsequent months as per different government reports. This translates to only 30–40% of the rural surfaces being painted, which represents a massive untapped market. Given such low penetration, the highest growth potential in the sector would be in rural markets, Raina said, voicing confidence about the sector’s future.

Continued Urban Expansions and Building Boom

Apart from rural expansion, Shalimar Paints is also pinning hopes on urban real estate growth and infrastructure development. Revival in real estate post-pandemic has added significantly to paint demand whereas projects like bridges and flyovers by the government have positively impacted the industrial paint segment.

According to Raina, easing inflation and tax rebates from the Union Budget have cued a change in consumer spending. Because homeowners have more disposable income, they’re spending on home improvements, driving up paint consumption. “With more disposable income, people are going to purchase things for their homes, be it remodels or new builds,” he added.

Difficulties and Outlook for the Industry

While it is expected to grow robustly, the paint industry is grappling with issues including higher prices of raw materials, global economic softness and possible US tariffs. Raina said 50-60% of raw material used by the industry is imported, which exposes the sector to fluctuations in international prices. “Any government policy changes affecting imports will impact costs,” he warned.

However, Raina is still bullish The overall margins shrank last year but the market conditions are improving gradually, he said. For the last quarter, the industry went from negative to single-digit positive growth, signaling the beginning of a turnaround.

The Indian Paints and Coatings Market is likely to touch $15.04 billion in 2029, registering a CAGR of 9.38% from 2024 to 2029, according to an ICICI Direct report.

Combining rural growth, urban construction, and Government projects infrastructure, it is associated with Shalimar Paints for long-term sustainable growth in the changing Indian scenario of the Paint industry.