Paint Industry presentation

P A I N TI N D U S T R Y

OVERVIEWCOMPONENTS OF PAINT

TYPES OF PAINT

PRODUCTION PROCESS

MARKET OUTLOOK

PRODUCT ANALYSIS

COMPONENTSOF PAINT

COMPONENTS OF PAINT

Pigment Binder Solvent Additive

Pigments add

COLOURto the paint

Pigments may confer

UV PROTECTION

CAN BE CLASSIFIED AS

PIGMENTS

ORGANICCLAYS, MICA, SILICA, TALCS

INORGANICTiO2, Sb2O3, ZnO, Cr2O3

COMPONENTS OF PAINT

Pigment Binder Solvent Additive

Binders form the

MAIN CONSTITUENTin a paint mixture

the pigmentsBONDS WITH

Binders form a

MATRIX and

in the mixture

Binders allow for

HOMOGENEITY

GLOSS

Binders influence key

properties such as

DURABILITYand

CAN BE CLASSIFIED BASED ON

BINDERS

MECHANISMSFOR FILM FORMATION

THERMOPLASTICACRYLIC, VINYL ACRYLIC (PVA), STYRENE ACRYLIC

THERMOSETTINGEPOXIES, POLYURETHANE EMULSIONS

COMPONENTS OF PAINT

Pigment Binder Solvent Additive

PIGMENTS AND BINDER

SOLVENTS

DISSOLVE

CAN BE CLASSIFIED

SOLVENTS

BASED ON USAGE INPAINT TYPE

WATERBASEDH2O

SOLVENTBASEDALIPHATICS & AROMATICS

ALCOHOLS

KETONES

WHITE SPIRIT

COMPONENTS OF PAINT

Pigment Binder Solvent Additive

ADDITIVES

MODIFY PROPERTIESOF THE LIQUID PAINT

ADDITIVES

INCLUDE

VARIOUS KINDS OF

EXTENDERS

BIOCIDES

CATALYSTS

THICKENERS

EMULSIFIERS

OTHERS

TYPES

OF

PAINT

WATERBASED

SOLVENTBASED

WATERBASEDPAINTS

ACCOUNT FOR A

LARGE PROPORTIONOF PAINTS IN

INDIVIDUAL MARKETS

USESWATERSOLVENTAS

USESSYNTHETIC POLYMERS

BINDERSAS

DRYING TIMESHORTER

USED ON A

VARIETYOF SURFACES

VOCLOWER

CONTENT

SOLVENTBASEDPAINTS

AS

USES

SOLVENT

PETROLEUM-BASED

COMPOUND

SURFACES

GOOD FOR

HEAVILY CHALKED

DRYING TIMELONGER

VOC EMISSIONSHIGHER

PRODUCTIONPROCESS

STEP 1

MEASURINGMIXINGAND

STEP 2MILLING

STEP 3

BLENDINGFILTERINGAND

STEP 4

PACKAGINGEXPORTAND

MARKET

OUTLOOK

GLOBAL

IN GLOBAL OIL SECTOR SLUMPDUE TO

OVERSUPPLYOF OIL

SIGNIFICANT DROPSCAUSING

IN THE PRICES OF CRUDE OIL

THEGOODDECREASE

IN RAW MATERIAL PRICES

SUCH AS

SOLVENTS

THEBAD

UNCERTAINTYAND

DEMAND FALLS

SLOWDOWNIN

KEY EMERGINGECONOMIES

SHIFTS TOWARD

VOC FREECOATINGS

USA

RISINGINTEREST RATES

MOVEMENTGREEN

ALTERNATIVE METHODSVOC FREEREGULATION OF

MSDSANDTDS

REDUCE USE OFBIOCIDES

PAINTTOWARDSSHIFT WATERBASED

INCREASE IN DEMAND

WITHIN

ARCHITECTURAL

AUTOMOTIVE

INDUSTRIAL

ARCHITECTURAL

LARGEST CONSUMER

RESIDENTIALDRIVENBY

NON-RESIDENTIALAND

GREATER PURCHASING POWER

50%OF MARKET

AUTOMOTIVE

SECOND LARGESTCONSUMER

INCREASEPRODUCTION EXPECTED TO

INDUSTRIALINCREASED DEMAND FORMARINE COATINGS

HIGH PERFORMANCE

ANTI-MICROBIAL ANDSOUNDPROOFINGPROPERTIES

INDIA

ESTIMATED VALUE OF

US$7 TRILLION IN 2016

3.1MILLION TONSANNUALLY

DECORATIVE2.4 MILLION TONS

INDUSTRIAL0.7 MILLION TONS

12-13%EXPECTED GROWTH

RATE OF

SIGNIFIES ROOM FOR

LOW PER CAPITA CONSUMPTION

MULTI-FOLD GROWTH

EXPECT

INCREASING COSTS OF PAINT

RISING COSTS OF RAW MATERIALS

VOLATILE INDIAN CURRENCY

FORECASTED

INCREASE IN

DEMAND

WITHINDECORATIVEINDUSTRIALSECTORS

DECORATIVE

INCREASES OVER

75% OF OVERALL MARKET

FESTIVE SEASON

STRONGLY INFLUENCED BY

THE HOUSING SECTORHIGHER LEVELS OF GROWTH EXPECTED

FOCUS ON PREMIUM PAINTSVOC-FREE PRODUCTSWATERBASED PAINTS

INDUSTRIAL25% OF OVERALL MARKET

VERYTECHNOLOGY INTENSIVE

RAW MATERIALS INTENSIVE

GROWEXPECTED TO

SURPLUS SUPPLYIN

INVESTMENTSWITH

CHINA

8.2% CLASSIFIED UNDER THE GROWTH PHASE

AT PER ANNUM

FORECASTED

CONSUMPTION AT 17.9 MILLION TONSBY 2018

STRONG GROWTH IN DOWNSTREAMINDUSTRIES

MAJOR SHIFT

TOWARD ENVIRONMENTALLY

FRIENDLY COATINGS

MAJOR CONCERN OVER SMOGSTRINGENCYON

EMISSIONSRISING MARKET OF WATER-BASED

OPPORTUNITIES FOR

INCREASED

ANDVOC CONTENT

COATINGS

RESINADDITIVEPIGMENT

MANUFACTURERS

FORECASTED

INCREASE IN

DEMAND

WITHINARCHITECTURALAUTOMOTIVESECTORS

EXPECTED INCREASE IN BOTH

INTERNAL AND EXTERNALDEMANDFOR CHINESE ARCHITECTURAL COATINGS

INTERNAL CONSTRUCTION OF COMMERICAL

HOUSING AND INFRASTRUCTURE

EXTERNALINCREASING QUALITY OF

DOMESTIC GOODS

DEPRECIATION OF CHINESE YUAN

STRONG DEMAND FOR VOC-FREEWOOD COATINGS

INCREASE IN SALES OF VEHICLES TO

2.4 MILLION UNITS IN 2015

RISE OF

COATINGS WATER-BASED

FAVOURED USE OF SOLVENT-BASEDCOATINGS

PRODUCTANALYSIS

5

EXISTINGPRODUCTS

TITANIUMDIOXIDEWHITE INORGANIC SOLIDRUTILE FORMHIGH BRIGHTNESS & REFRACTIVE INDEXKEY PRIME PIGMENT IN BOTHWATERBASED AND SOLVENTBASEDPAINT

CALCIUMCARBONATE

BRIGHTNESS & OPACITYHIGHWEATHERING RESISTANCEpH STABILIZATION

EXTENDER PIGMENTWHITE

LOW COST

FUMEDSILICAADDITIVE

MODIFIERRHEOLOGYANTI-SETTLING AGENT

RUSTPREVENTS AND CORRISION

HIGHTRANSPARENCYCHEMICALLY INERTGOOD HEAT RESISTANCE

ALKYDRESINSPLASTICTHERMOSETTING

BINDERS SOLVENTBASED INSYSTEMS

INTO CLASSIFIED SHORT, MEDIUMAND LONG OILS

LOSING DEMAND TO WATERBASEDPAINTS

METHANOLSOLVENT

INSOLUBLE WATER &ORGANIC SOLVENTS

REAGENT FOR FORMALDEHYDE,MTBE, ACETIC ACID

ANTIFREEZE IN PAINT STRIPPERS

NEWPRODUCTS

PHTHALOCYANINE BLUEC32H16CuN8

PIGMENTORGANIC BLUENON-TOXIC

COSTLOWSTABLE ACROSS VARIOUS pH RANGESANDTEMPERATURESVARIOUS DERIVATIVES

STYRENEACRYLICS

LIQUIDMILKY WHITE WATERBASED PAINT BINDER

IMPROVES ELASTICITYWHITENING RESISTANCEWASHABILITYFILM FORMATION

TEXANOLC12H24O3

COLOURLESS LIQUIDESTER-ALCOHOLNON-VOCCOALESCING AID

EASTMAN CHEMICAL COMAIN MANUFACTURER IS

COPPEROXINEC18H12CuN2O2

YELLOW-GREENISHPOWDER

INSOLUBLE IN AND

COMMON ORGANIC SOLVENTS

WATER

WATERBASEDBIOCIDE IN PAINTS

IPBCOFF-WHITE POWDER

SOLUBLE IN WATEREFFICIENT AGAINST FUNGITOXIC IN CERTAIN COUNTRIESRECOGNIZED AS A CONTACT ALLERGEN

ANDUSED AS A DRY-FILM PRESERVATIVE

BIOCIDE

Y O UT H A N K