Nippon Paint India Scouting M&A Deals as Margins Face Pressure

Nippon Paint (India) is looking for acquisition opportunities to expand its portfolio and add niche capabilities, Managing Director Sharad Malhotra said in an interview. The company is evaluating both organic growth and strategic partnerships, he added.

The sharp rise in crude oil prices and aggressive pricing by new entrants have squeezed margins across the paint industry. Raw material costs tied to crude derivatives remain a challenge. Rising inflation is also weighing on demand sentiment, Malhotra said.

Despite short-term caution from inflation, the long-term fundamentals of the paint industry remain strong, he said. Urbanisation, housing demand, and infrastructure development support category growth. India is a structurally high-growth market.

Competition is a positive sign for a growing industry, Malhotra said. India's per capita paint consumption is below many developed markets, leaving room for all players. New entrants accelerate innovation and raise quality expectations.

The company views itself as an augmented finishing solutions provider, not just a paint manufacturer. The boundaries between paint, surface protection, and construction chemicals are blurring. “We are on the lookout for inorganic M&A opportunities that will allow us to acquire niche capabilities and expand our portfolio, reaching new customer segments faster,” Malhotra said.

Nippon Paint India is also seeing strong momentum across infrastructure, manufacturing, automotive, and industrial capex in India. The government's 'Make in India' push and the transition toward electric vehicles are driving demand for specialised protective coatings, he said.

Malhotra said the broader objective is to ensure that the company's manufacturing and supply chain network is agile and scalable to support long-term growth.