"For the past three years, the metros were contributing more to the growth of the industry; however, in the next three years, it is smaller towns that will be of more importance for the development of the sector. We are bullish on UP and Uttarakhand because cities like Meerut, Allahabad, Benaras and Dehradun, which hold immense opportunities," Anuj Jain, vice-president (sales & marketing), KNP, told Business Standard.
The company has a share of 15 per cent of the Rs 600 crore market in UP and Uttarakhand (combined). It has about 1,400 dealers in the two states.
"There is a lot of scope for the emulsions and premium segment, especially in Lucknow. The growth rate here is almost 20 per cent," he added.
Further, the company will be shifting its divisional office for the region (UP and Uttarakhand) from Ghaziabad to Lucknow by September this year.
"Recognising the burgeoning demand in the paint industry, we see it as a necessary step," Jain added.
However, the company says the recent inflation has slowed the pace of growth in paints in the industrial sector, though the domestic sector is performing well.
"In order to expand the market further we are planning to increase the number of dealers and also working on brand building. We have consultants who will work with customers on special projects. The increased real estate activities have given us ample scope to develop," he said.
The paint industry in India is Rs 8,800 crore, divided into the organised and unorganised sectors.
The business in the organised sector is roughly Rs 6,350 crore, which can further be divided into decorative (Rs 4,900 crore) and industrial (Rs 1,450 crore).
KNP, with a group turnover of Rs 1,315 crore, enjoys a market share of 42 per cent in industrial paint and 14 per cent in decorative paint.
