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February 26, 2000

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Sector report: Paints

Dun and Bradstreet India

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Inputs
Titanium dioxide (rutile and anatase grade), phthallic anhydride, organic pigments, pentaerythritol and resins.

Key players
Asian Paints, ICI, Goodlass Nerolac, Berger Paints, Jenson & Nicholson.

Tax structure

Customs Duty (%)
Item 1999-2000
Titanium dioxide 40
   
Excise Duty (%)
Item 1999-2000
Paints 16
Titanium dioxide 16
Resins 16

Background

  • Raw materials account for nearly 70 per cent of the production cost of paints. The industry is critically dependent on imported titanium dioxide.
  • Lowering of excise duty over the past four years has resulted in major gains for the organised sector in terms of market share.
  • The Indian paint market is skewed in favour of decorative paints. In developed countries, industrial paints account for the bulk of the paint market.
  • Fortunes of the paint industry are directly linked to growth of end-user industries such as the automobile, construction and white goods industry.

Expectations from the Budget

Unlikely to have any significant changes in the customs duty structure.

ALSO SEE:

What will Yashwant Sinha do?

How will personal taxes change?

Fiscal report card

SECTOR ANALYSIS:




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